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.

Extension of Sitting Hours

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Mr. Speaker, it is a pleasure to rise today to contribute to the debate on government Motion No. 22, which is an important motion. It addresses the manner in which the House will continue to work between now and when we eventually reach the summer break. It is important because it will allow us to make additional progress in advancing the agenda that Canadians have elected us to do in this place.

Motion No. 22 will also position the House to build on the good work that has already been accomplished by the committees and the work that the committees have put forward. I want to highlight that this is not just work that government members on the committees are doing; this is work that all parties and individuals on committees have been contributing to in order to get the legislation back to this place so it can be voted on before the summer break. That is really important.

A lot of the debate today has focused around government legislation, that it is only about what the government wants. Through my participation at committees and the work I have been able to do, I have seen that quite often committees have the ability to work really well together, to collaborate together, to work on a less hyper-partisan level than we seem to experience in this place, and quite often do come to compromises. I know that happens for me and my colleagues at the defence committee. We should all take great pride in that.

The problem is that if we do not have this motion, if we do not extend the sitting hours, we will be put into a situation where all the work we have done basically gets put on the table until the fall. That is why it is so important to do this.

I would like to highlight some of that important work the committees have done. Before I get to that, it is important to stress the fact that during the 2015 election, the governing party now, the Liberal Party at the time, of which I am a part of, made a commitment to strengthen parliamentary committees. In doing so, we were committing a new government's respect for the fundamental roles that parliamentarians played on committees in order to hold government to account.

This commitment included in the mandate letter of the government House leader that under the government, the parliamentary committees would be be freer and better equipped with legislation. One of the things out of a whole host of things that committees do differently now is the chairs are elected freely by the members. They are not appointed by the government. It is done with a secret ballot that allows members to freely express who they are putting forward as their selection for chair.

One of the other changes to committee recently was with respect to the addition of putting parliamentary secretaries on committees, but not in a voting capacity, in a capacity that they could be there to contribute when necessary. On the defence committee, parliamentary secretaries do not play a very active role, but they are there so they can stay informed about what the committee is doing. By not having a vote, it removes any potential interference that one might see coming from the minister's office into the committee.

The Standing Orders that enabled all this were passed in June 2017. In my opinion, and I think in the opinion of the majority of the people in the House, they have given committees the ability to genuinely act in a more open, transparent, and free manner.

I would like to quickly highlight some of the important legislation that is currently before Parliament that runs the risk of not being voted on and to be completed and enacted before the end of this session.

The first one I would like to speak to is Bill C-59, which was before the Standing Committee on Public Safety and National Security. The bill, the national security act, 2017, began in November 2017 and extended to clause-by-clause review in April 2018. This committee literally spent five or six months working on this legislation.

For anybody to suggest that the government somehow does not want committees to have full participation and input is absolutely ridiculous, when we consider the Standing Committee on Public Safety and National Security spent up to six months on the legislation.

Bill C-59 fulfill's the government's commitment to keep Canadians safe, while safeguarding the rights and freedoms of Canadians.

Members might remember the bill that was introduced by the previous government, Bill C-51, which ended up with massive public outcry and complaints about its infringement upon the rights and freedoms of individuals. During the election, a commitment was made to ensure new legislation would come forward. Now we have seen upward of five to six months of committee deliberation on that work. It is important to note that the committee adopted over 40 amendments to bring greater clarity, transparency, and accountability to the bill.

Another bill before the same committee is Bill C-71, an act to amend certain acts and regulations in relation to firearms. We know this is another thing about which Canadians are extremely concerned. Bill C-71 would enhance background checks on those seeking to obtain firearms. It would make background checks in the existing licensing system more effective. It would also standardize best practices among retailers to maintain adequate inventory and sales records that would be accessible to police officers.

Bill C-71 would also ensure that a classification of firearms would be done in an impartial, professional, and accurate manner, consisting of resorting to a system in which Parliament would define the classes of authorities, but leave would it to experts within the RCMP to determine firearms classification specifically. The most important part of that would be leaving the political influence out of it.

As we can see, Bill C-71 is an important bill that would contribute to public safety. That is why it is so critical to ensure it has an opportunity to come back to the House to be voted on before we break for the summer.

The biggest bill, and in my opinion the most important bill that would do the most for Canadians, is Bill C-74, the budget implementation act. This bill would affect every Canadian from coast to coast. It would increase the opportunities for people to have a fair chance at success, in particular those who are struggling.

The budget implementation act would specifically introduce things like a Canada workers benefit to assist low-income workers. It would index the Canada child benefit to help nine out of 10 Canadian families. It would lower the taxes on small business. It would put in better supports for veterans. It is absolutely critical to have the bill work its way through the finance committee and the deliberations it has with Canadians throughout the country, so it can come back to the House and we can vote on it in a timely fashion.

I have so many more examples of other legislation before committee right now. However, for all of these reasons, it is so important we pass the motion now to allow us to sit later into the evenings so we can ensure we complete the work Canadians have put us here to do.

I want to take two more minutes to speak specifically to the amendments that have come forward today. I know there has been a lot of discussion about the proportion of time being spent on government business versus the proportion of time being spent on opposition motions and opposition days. This is not about proportioning of government versus opposition. This is about ensuring we can put more items on the agenda. That is why it is important to ensure we sit later into the evenings so we can do exactly that. The items I am speaking about are ones that have been collaborated on in committees by all members of all parties of the House.

That is why I personally cannot support the amendments. I do not think that they are particularly good amendments, because they are not going after what we need to do, which is to examine more pieces of legislation, as opposed to proportionally growing the amount of time that each political party gets, which is unfortunately the partisan nature that this debate has been put into.

With that, I see that we are approaching the end of the debate on this matter. I would like to leave an opportunity for people to ask questions. I am happy to entertain those at this time.

[Hedy Fry, Liberal, Vancouver Centre, BC]

Mr. Speaker, I have been listening with interest to the discussion and debate in the House on this particular motion, Motion No. 22, and I am rising to support the motion.

I have been in this place for a very long time and I have watched political gamesmanship come and go. I have watched, when we were in opposition, all these little games being played occasionally. However, I think what we are talking about right now is that there are still some important government bills that need to be finished. Let us just pick one.

Let us look at Bill C-74, the Budget Implementation Act, 2018, No. 1. I understand and I heard very clearly the debate from the hon. member that this is not going to be fair, that the government had a long time, and that it could have done a lot of things. This may or may not be true; that is not the issue. The point is that there are some things in our budget implementation bill that must come to pass in a certain period of time.

Let us look, for instance, at the Canada child benefit, which is being indexed starting in July this summer, and what will happen if we do not finish the debate on it or if we do not get it passed. If we do not get that done, middle-class families will not get the benefit of the indexation.

There is the workers benefit plan. If we do not get this debate done, workers will not be able to take advantage of that extra $500 that they may get, especially if they are making $15,000 a year. That could help them out over the rest of the time.

One could argue about how many angels dance on the head of a pin, who said what, when they said it, and what this is all going to mean if it is or is not fair. At the end of the day, who is it supposed to be fair to? It is supposed to be fair to our constituents. It is supposed to be fair to Canadians. Canadians need to get the benefit of some of the things that are happening in these bills.

Let us look at the issue of pollution. In this House today, we are talking a lot about the environment and pollution, etc. The indexing of carbon needs to start. It needs to move forward. There are 67 nations in the world that have a carbon price, so let us get moving on this. Let us start getting money in and money out, and getting that money back into provinces so that they can start moving. Then we could get the greenhouse gas emissions down, and some other things could come about from the indexing of carbon.

Let us look at Norway. For me, this is the finest example of what a carbon tax could do. Norway started a carbon tax way back, with their former prime minister Gro Harlem Brundtland. All of the oil companies decided that they hated it, but they paid it, and that moved them forward to start doing technology and changing to clean technology in terms of oil and bringing down their greenhouse gases. I think they are the fifth-largest oil producer in the world, but they are number one in terms of environmental sustainability and they are no longer paying a tax.

I hear sometimes from across the way, especially from the hon. members of the official opposition, that this measure is going to kill the economy. Norway has the highest per capita income in the world. All of the Norwegians are enjoying the benefits. The money is going into social programs. It is going into making sure that Norway is a better place for quality of life. When we look at some of these things, we see that we have to get moving.

British Columbia has had a carbon tax, I think for about 10 or 12 or 15 years. Now British Columbia is the number one performing economy in Canada. British Columbia is actually creating more jobs, and we are seeing better employment in British Columbia than in anywhere else across the country. Let us get moving on some of these things.

The point is that we need to move forward with the initiatives that we need to finish before we rise. We all want to go back to our ridings and enjoy the summer, spending time with our families and our constituents. Our constituents need us to roll up our sleeves and get moving here. Let us forget whatever gamesmanship we want to play and who said what and where and when, and who is right or wrong, and let us just get this done for Canadians.

Let us just move forward and do it. I do not understand why this is so difficult to comprehend. When we look at all the people who are waiting for these bills to move forward, we see it is really time to start talking about how to do things to change it.

Let us talk about, for instance, Bill C-65, which addresses harassment and violence in the workplace. Let us get this done, get it moving, so that we can diminish the amount of harassment and violence in the workplace. We know that this is important. If we do not get this done before we rise, and we wait until we come back in the fall, what will happen is that it will continue for an extra three months.

We passed Bill C-66, on which all of us came together. That was a shining example, in my opinion, of how well we can work when we care and when we put Canadians first. Let us look at the expunging of the records of LGBTQ2+ Canadians who were convicted of offences involving consensual sexual activity. The bill was introduced on the same day the Prime Minister delivered his apology. Everyone in this House came together. We moved forward, and those affected are going to be able to get compensation. We can do things when we want to.

Sometimes I think the politics get in the way of getting the work done. Let us all agree that we need to get this done. Working later hours means that we can get to some of these important pieces of legislation that must be passed for the benefit of Canadians. This is what I am getting to. If we have these extended sittings, one can actually discuss and debate the bills and do what we need to do with these bills. The motion would give us time for that extra debate on those bills.

At least before we rise for the summer, we would be able to say to Canadians that we worked hard; some of us did not like it or think it was fair or the right thing to do, but we were putting them first. I think we sometimes forget to do that in this place. We forget who we are serving and why we should be serving them in a very efficient and effective manner. Tricks and tactics are cute. Everyone gets a “gotcha” and “my strategy is better than yours”, but sometimes we have to put that aside for the benefit of the people who elected us.

Let us think of what we need to get going on and agree on in terms of British Columbia and New Brunswick, which are facing flooding. We know that in British Columbia, there are chances of fires over this very hot summer, which may be another thing we have to deal with. Therefore, let us put in place some kind of process so we can move forward and get help to them.

On Bill C-74, the budget implementation bill, we have seen amendments come from the standing committee. Let us deal with those amendments. Let us look at this and talk about how we get going. We are talking about the Canada child benefit, which is the biggest one I can think of for the middle class. I know that families are waiting for this to give them the extra money they need to help their children. Time is of the essence when we are looking at putting money in people's pockets. Not only that, but once we index it with this bill, it is going to assist indigenous communities. Many do not know that they are eligible or that they need to apply. They need to know how to apply for this money, and it is important for them.

As I said, the new workers benefit, the CWB, will allow Canadians to take home more money while they work, and it will encourage Canadians to enter the labour market. Some of the other pieces in the budget implementation bill will help to create a work-life balance for people in this House and women and men who are working and trying to bring up their children. They are worried that they do not have the time for anything, that they are neither fish nor fowl, they are neither workers nor parents.

Let us move forward and be generous with our time in terms of helping Canadians. We can look at some of the work to do in this House that will not only help middle-class Canadians but also move the economy forward, get people working, and get more jobs going in the summer. I am not being condescending, but we all know that sometimes, for our constituents, a month, two months, or a year is what they need to get moving to live the quality of life they want. Let us get moving on some of these things.

We can look at the Minister of Democratic Reform. I do not necessarily agree or disagree with any of the arguments that have been made, but at the end of the day, we need time to move forward, with the election coming up.

I know that some members have said that we did not do it, and so now what? Who are we punishing when we do not do it and say we could have done it and should have done it, and now we are running late? At the end of the day, getting work done is not about saying “woulda, coulda, shoulda” and that we have a timeline. Let us just put aside some of the scoring of points we try to do in this place. It would really help Canadians in feeling that they can trust their politicians, that politicians sometimes care about them more than about scoring points and creating tactics and “gotcha” moments in the House.

We can look at tax reform in Bill C-74, for instance. We are talking about the fact that small and medium-sized businesses can use the corporate tax savings to help themselves get about $7,500 a year so they can expand their businesses. In so doing, they can create more jobs. It would help people come summer and moving on into the fall. They can bring new capital investments. Those are some of the things we are talking about.

We also know there are loopholes for large private corporations and that they use the loopholes to avoid paying taxes. Let us fix that. Let us get some of these things moving. It may be the unintended tax advantage they are looking for. Let us fix it. Let us move on and get some of these things done.

I will go back to carbon pricing. Right now, everyone is debating carbon pricing and what is happening with carbon, greenhouse gas emissions, and the Paris agreement. Let us get it moving. Every time we delay things here in the House, we are making Canadians lag behind. We are putting things on hold, when we know that time is of the essence. Again, I am not necessarily disagreeing with people who say that we had an opportunity to do it but we did not and that we are not giving the opposition enough time to get their pieces on the table.

Right now we have legislation on the table that has to be passed for the benefit of Canadians. I will reiterate. Let us put aside all the tactics we are employing in the House, all the gamesmanship, and come together, as we have shown we can. We did it with the LGBTQ2+ issue. Let us show that we can come together for the benefit of Canadians, because that is what we were elected to do.

There will always be enough time for gamesmanship and pointing fingers. However, the environment, the economy, and jobs are very important things. Look at the changes we are proposing in terms of making Parliament more open and transparent. We have promised to give the Canadian public a bigger say when looking at projects and when planning, and so on. We can get better input from them. Let us get that going. The summer gives Canadians an opportunity to start thinking about these things and having input.

Let us talk about parliamentary committees. I remember being in opposition when the parliamentary committee system was run by the parliamentary secretary, and we had to do what the parliamentary secretary said. They got the agenda going and nobody listened to anyone. We said we were going to change it. We came in, and we did. Parliamentary secretaries sit on committees, because they need to hear what is going on so they can go back to the minister and say what people are debating. However, they have no vote. They cannot run the show anymore. It is now far more democratic in parliamentary committees.

Having chaired a committee myself, I can say that now everyone is busy debating the issues and people are agreeing on so many things. I look to my seatmate here, who is chair of the finance committee. The finance committee is doing yeoman's work. It is changing things and making amendments that are making a difference, and it is all because Parliament is working a whole lot better.

I could go on, but I am not going to. I just want to make a plea. We have made our points in the debate in the House that the government is dragging its feet or not dragging its feet. Members have made their points. Let us now get on with the work. Let us roll up our sleeves and work the extra hours. Let Canadians see that we are committed to them, to the work we need to do, and to the reason we were elected, and let us just get things done.

Finance

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I have the honour to present, in both official languages, the 23rd report of the Standing Committee on Finance in relation to Bill C-74, an act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures. The committee has studied the bill and has decided to report the bill back to the House with amendments.

Justice

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, if that is true, why did it not go to the justice committee? Why was it not included in Bill C-75 rather than Bill C-74? The Liberals have proposed dramatic changes to our criminal justice system that provide a “get out of jail” card for corporations charged with criminal activity. Not only have they snuck it into a budget bill, they rammed it through the finance committee without hearing from any witnesses, not one.

Can the Prime Minister tell Canadians why this radical change was not studied properly at the justice committee, where it belongs? Why is he intent on using a budget bill to continue to pass his soft-on-crime agenda?

Extension of Sitting Hours

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

moved:

That, notwithstanding any Standing Order or usual practice of the House, commencing upon the adoption of this Order and concluding on Friday, June 22, 2018:

(a) on Mondays, Tuesdays, Wednesdays and Thursdays, the ordinary hour of daily adjournment shall be 12:00 a.m., except that it shall be 10:00 p.m. on a day when a debate, pursuant to Standing Order 52 or 53.1, is to take place;

(b) subject to paragraph (e), when a recorded division is requested in respect of a debatable motion, including any division arising as a consequence of the application of Standing Order 61(2) or Standing Order 78, but not including any division in relation to the Business of Supply or arising as a consequence of an order made pursuant to Standing Order 57, (i) before 2:00 p.m. on a Monday, Tuesday, Wednesday or Thursday, it shall stand deferred until the conclusion of Oral Questions at that day’s sitting, or (ii) after 2:00 p.m. on a Monday, Tuesday, Wednesday or Thursday, or at any time on a Friday, it shall stand deferred until the conclusion of Oral Questions at the next sitting day that is not a Friday;

(c) notwithstanding Standing Order 45(6) and paragraph (b) of this Order, no recorded division requested after 2:00 p.m. on Thursday, June 21, 2018, or at any time on Friday, June 22, 2018, shall be deferred, except for any recorded division which, under the Standing Orders, would be deferred to immediately before the time provided for Private Members’ Business on Wednesday, September 19, 2018;

(d) the time provided for Government Orders shall not be extended pursuant to Standing Order 45(7.1) or Standing Order 67.1(2);

(e) when a recorded division, which would have ordinarily been deemed deferred to immediately before the time provided for Private Members’ Business on a Wednesday governed by this Order, is requested, the said division is deemed to have been deferred until the conclusion of Oral Questions on the same Wednesday;

(f) any recorded division which, at the time of the adoption of this Order, stands deferred to immediately before the time provided for Private Members’ Business on the Wednesday immediately following the adoption of this Order shall be deemed to stand deferred to the conclusion of Oral Questions on the same Wednesday;

(g) a recorded division requested in respect of a motion to concur in a government bill at the report stage pursuant to Standing Order 76.1(9), where the bill has neither been amended nor debated at the report stage, shall be deferred in the manner prescribed by paragraph (b);

(h) for greater certainty, this Order shall not limit the application of Standing Order 45(7);

(i) no dilatory motion may be proposed after 6:30 p.m.;

(j) notwithstanding Standing Orders 81(16)(b) and (c) and 81(18)(c), proceedings on any opposition motion shall conclude no later than 5:30 p.m. on the sitting day that is designated for that purpose, except on a Monday when they shall conclude at 6:30 p.m. or on a Friday when they shall conclude at 1:30 p.m.; and

(k) when debate on a motion for the concurrence in a report from a standing, standing joint or special committee is adjourned or interrupted, the debate shall again be considered on a day designated by the government, after consultation with the House Leaders of the other parties, but in any case not later than the 20th sitting day after the interruption.

Mr. Speaker, I rise today to speak to Motion No. 22. The motion would extend the sitting hours of the House until we rise for the summer adjournment.

We are now heading into the final weeks of this current session of Parliament. We have an important legislative agenda before us, and we are determined to work hard to make significant progress. This motion to extend the sitting hours of the House is timely and, clearly, it is necessary. Members opposite will have more time for debate. The motion would do exactly that.

So far in this Parliament, the House has passed 54 government bills, and 44 of those have been given royal assent. We have more work to do. We have many important bills to make progress on before we adjourn for the summer recess and we return to our ridings.

Here are some examples of the important legislation that we would like to see make progress in the House of Commons: Bill C-74, the budget implementation act, 2018, No. 1, which includes measures to ensure every Canadian has a real and fair chance at success, including a new Canada workers benefit to assist low-income workers; an indexed Canada child benefit that will help nine out of 10 Canadian families; a lower tax for small businesses, and I am sure we can agree that the backbone of the Canadian economy deserves lower taxes; and better support for Canada's veterans.

Business of the House

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

Mr. Speaker, this afternoon, we will begin debate on Bill C-75, the justice modernization act. This evening the House will consider, in committee of the whole, the votes in the main estimates for the Department of Citizenship and Immigration.

Tomorrow morning, we will debate the motion to extend the sitting hours. After question period, we will begin debate at report stage and third reading of Bill C-47 on the Arms Trade Treaty. We will resume that debate on Monday.

On Tuesday, we will resume debate at second reading of Bill C-75, the justice modernization act. On Wednesday, we will begin debate at report stage and third reading of Bill C-64, the abandoned vessels act.

Finally, should Bill C-74, the budget bill, or Bill C-69, the environmental assessment act, be reported back to the House, they shall take priority in the calendar.

Marijuana

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, the Liberal government deliberately chose to tax medical marijuana in its Bill C-74.

Canadians who have a prescription to purchase medical cannabis are already required to spend hundreds or even thousands of dollars a month to buy enough for their own needs. The Liberals had a chance to address that yesterday in committee, but they outright rejected the NDP's amendments.

How does the Prime Minister explain to the 270,000 patients in Canada who use medical cannabis that his bill will make their cannabis even more expensive?

Department of Finance—Main Estimates, 2018-19

[Joël Lightbound, Liberal, Louis-Hébert, QC]

Madam Chair, we believe that the proposal put forward in Bill C-74, the budget implementation bill, is very good for the economy because it will stimulate innovation by putting a price on carbon pollution. At the same time, it will enable us to improve the fate of our environment by reducing greenhouse gas emissions. It is just one of the many measures a government can take to manage the economy and the environment at the same time.

[Bill Morneau, Liberal, Minister of Finance]

Mr. Chair, I know the hon. member would agree Canadians understand the effects of pollution are not free, because I know she spent a significant of her career talking about that. She also knows that polluting the air we breathe and the earth and the oceans that feed us must come at a cost to those who do the polluting.

Pricing carbon pollution is simply one of the most effective ways to reduce emissions. It creates incentives for businesses and households to innovate more and pollute less. That is why putting a price on carbon pollution is central to the government's plans to fight climate change and to grow the economy.

Through Bill C-74, which is currently before Parliament, the government is taking action to reduce emissions by introducing the greenhouse gas pollution pricing act, which would put a legal framework in place for the proposed federal carbon pollution pricing system. The pan-Canadian framework on clean growth and climate change I mentioned earlier includes a collaborative pan-Canadian approach to pricing carbon pollution, with the aim of having carbon pricing in place in all provinces and territories this calendar year.

Right now, a price on carbon pollution is in place in four provinces—Quebec, Ontario, British Columbia, and Alberta—covering over 80% of the Canadian population. These provinces are leading Canada in economic growth. Simply put, we are putting a price on what we do not want, which is carbon pollution, while encouraging more of what we do want: clean innovation and lower emissions.

Opposition Motion—Production of Documents on Carbon Pricing

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, I will be sharing my time with the member for Bellechasse—Les Etchemins—Lévis.

It has been suggested that an effective response to climate change needs to be scientifically sound, environmentally sustainable, financially realistic, as well as global, comprehensive, and holistic. That may be a little optimistic in that we would not get all of the components in a planned approach in response to climate change, but I would suggest that the Liberals are failing on probably each and every one of these measures as they approach their climate change plan. They are really failing to meet most of these criteria.

As people in the House are aware, the government has introduced Bill C-74, which includes the greenhouse gas pollution pricing act, and talks about it being designed to impact behavioural change. My remarks are going to focus not only on how the specific issues I mentioned earlier would be ineffective but also how many people with the least options are going to be unduly penalized.

First, all Canadians should be very concerned and offended by the lack of transparency on this particular initiative. The Conservative shadow minister for finance has regularly pointed out the carbon tax cover-up. The finance department knows the numbers. The finance department has calculated the numbers in terms of the cost for individuals and families. When it was asked for that information, the government released it, but blacked out all of the information. It really is quite offensive that a government would impose a tax on Canadians and not be transparent about what that tax will actually cost.

I harken back to the election commitments the Liberals made, saying they would be a transparent government by default. On this and many other issues, whether it be the deficit or democratic reform, they are absolutely failing to live up to the commitments they made to Canadians in 2015. I suggest that for any credibility, they should be releasing those numbers and not waiting until months down the road, after they have imposed the tax. This, quite frankly, is wrong.

At the start of my speech, I talked about something that was scientifically sound. What have the Liberals done? They have set a pricing level that would start at $30 and move its way up to $50. The minimum calculation that any scientist makes in terms of being effective is $100, and I have seen some that go as high as $300, as what needs to be the price on carbon to create the behavioural changes the Liberals want to create. They are creating a cost for consumers, but it is not going to have the impact this tax needs to have.

It is important to note that it is being done in isolation from our continental partners. If we recall, China, India, and the U.S. are the major emitters and Canada is less than 2%. We need to be global in our approach. That is in the definition, “global approach”. Here we are, going down a path in which, quite frankly, the Liberals are pricing in a way that would hurt Canadians and not create the desired effect, and they are essentially doing it in isolation from the global major emitters.

The government and the Minister of Environment and Climate Change love to talk about British Columbia, so I will as well. That is the province I am from. They hold it up as a really great model. They have consistently said that. It was introduced in 2008 as a revenue neutral carbon tax, but let me explain what has been happening over the years. In actual fact, I was not upset or concerned when the British Columbia government introduced this revenue neutral carbon tax. It explained it appropriately. I was fortunate that it was not going to create a huge affordability issue for me and my family. The B.C. government was trying its best to offset impacts on those who could not afford it.

The Liberals hold it up as great example because, they say, it brought emissions down. Well, emissions went down across the world in 2008. They went down because we had a global recession. The analysis was that the carbon tax brought emissions down and then the economy recovered, absolutely. If we take a baseline from before, when the economy was ticking along quite nicely in 2007 and 2008, and then we had a global recession, we would have a significant drop in emissions. Ultimately Canada had a good recovery.

The Liberals also like to say that emissions dropped and the GDP did well. They love to compare it to Ontario, but Ontario was suffering the highest electricity prices and manufacturing was fleeing. They never actually compare it to provinces that had a similar type of economy, such as Saskatchewan and Alberta, and if we look at the economic growth in those two provinces, it was significantly more than British Columbia's economic growth. We cannot take gross measures and hope to be precise in what the impact of the actual carbon tax was, because there were so many things that were happening throughout that time period.

What was a revenue-neutral carbon tax started to drift. There was a solid commitment to the citizens of British Columbia that every penny the government took in carbon taxes would be returned to them. What happened in 2013-14 was that the Auditor General started to review and saw that what was initially revenue neutral was turning into other things. The B.C. government started to include many things that really were inappropriately included to suggest it was revenue neutral, but in actual fact it was drifting quite significantly from revenue neutrality.

I have to talk about the NDP in British Columbia, because it campaigned on “axe the tax”. It said it would axe the tax, that it would be gone. The NDP finally became government in 2017, and the first thing it did was to take away the revenue neutrality from the carbon tax. It actually legislated away revenue neutrality and then increased the tax. What was a well-designed, reasonable approach quickly became a cash grab under the control of the NDP government. It was general revenue for the government to use for whatever it wanted.

As a result, members will forgive me for being a little cynical about anyone who lauds the British Columbia tax as a great revenue-neutral model. I know the same thing could happen across the country in all the other provinces as they implement this imposed federal tax. It demonstrates how a commitment to revenue neutrality can quickly be reneged on, and there is nothing that will stop the federal government from doing the same thing.

The north is going to be the area most impacted by these changes. It has very limited density. In many cases, people rely on diesel fuel, and the north has extra costs associated with its mining. It is going to be significantly impacted.

The northern premiers signed on in good faith, with the understanding that the government would look at their particular and unique circumstances. What has happened? What does the bill the government has introduced do for the north? It has done nothing. The Liberals looked at a baseline for mining emissions and actually based it on a southern model, so what is going to happen is that mines in the north will be more significantly impacted than any others.

What we see here is that the government has introduced a measure that is going to be ineffective in meeting its goal. It has provided no accommodation for people who live in the north and in rural communities. It is really important that the Liberal government gets into its own areas of jurisdiction. It has policy levers it can use to meet reduction targets and meet its Paris targets. However, quite simply, what the government is doing is going to be a failure on way too many measures.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, as I look at Bill C-74 and its implications for something like mining initiatives in Nunavut, the way they have calculated things, there will be an extraordinary impact. It is estimated that will be $20 million a year. There has been no accommodation for mining projects in the north. I think people in the north are very concerned about the Liberal government moving forward. Quite frankly, capital will simply flow as they cannot be competitive with that $20-million increase and will go where their money is welcome.

What does the member have to say to those people in Nunavut when an employer, who is employing probably half of that population's workforce, is very concerned, and the Liberal government has done nothing to even consider the unique circumstances of the north?

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

Mr. Speaker, when it comes to Canada's economy and the environment, our government has been clear. We believe that the two go hand in hand. Canadians understand that pollution is not free, and they understand, as we do, that the most effective way to reduce greenhouse gas emissions is to put a price on carbon pollution. That is why we introduced the greenhouse gas pollution pricing act, part of the budget implementation act, otherwise known as Bill C-74, currently before the House.

By giving businesses and households an incentive to innovate more and pollute less, we are fulfilling our commitment to invest in growth while respecting and helping to protect our shared environment. This approach, investing in growth that strengthens and grows the middle class and helps people who are working hard to join it, is already paying off.

Let me take a moment to list the economic achievements we have reached in just two years in government. Since this government was elected, more than 600,000 new jobs have been created, most of them full time. Canada's unemployment rate is at the lowest level we have seen in more than 40 years. Since 2016, Canada has led the G7 in economic growth. The federal debt-to-GDP ratio, which is our debt relative to our economy, is not only on a downward track but is nearly at its lowest level in 40 years.

We know that investing in our communities and in our people is the best way to grow a modern economy. We have also taken steps to ensure a good business climate so that our businesses can succeed, grow, and hire. Canada is the best place in the world to invest and to do business, and we want to make sure that it stays as such.

This past week, A.T. Kearney came out with its best places to invest, or foreign direct investment index, as we economists like to call it. Canada ranked number two in the world and has moved up three places, just slightly behind the United States of America. This is important to note, because this report, which was put out by a non-partisan institute, incorporated the fact that 85% of the population of Canada is covered by a carbon-pricing mechanism.

We know that low and competitive tax rates allow Canada's entrepreneurs to invest in their businesses and create even more good, well-paying middle-class jobs. That is why we cut the small business tax rate to 10% this past January. It will fall even further next January to 9%. By this time next year, the combined federal, provincial, territorial average income tax rate for small business will be 12.2%, the lowest in the G7 and the third lowest among members of the OECD. This means that enterprises in my riding will see up to $7,500 in lower federal corporate income tax per year. This will help Canadian entrepreneurs and innovators do what they do best, which is create jobs. I note that 600,000 of them have been created over the last two and a half years. That is good news for Canadian businesses and great news for the hard-working people in my riding of Vaughan--Woodbridge and across this country.

There is more work to be done. That is why in budget 2018, we proposed the Canada workers benefit, a strengthened version of the working income tax benefit, something I long advocated for before I became a candidate for the Liberal Party and a member of Parliament in this government.

The new CWB will allow low-income workers to take home more money while they work. It is important to note that it will also encourage more folks to enter the labour force. To someone nearing retirement or who is retired and wants to go back to work and make some extra money, this will be a top-up. To students going to university who want to make some extra money on the side to help pay for their studies, this will be a little bit of a top-up. That is so important in the face of the demographic challenges Canada and many of the western countries are facing these days. For example, low-income workers earning $15,000 could receive up to $500 more from the CWB in 2019 than they would have received this year under the current system.

With automatic enrolment, literally hundreds of thousands of individuals across Canada, low-income, hard-working Canadians, will receive the benefit. It is estimated that 70,000 more Canadians will be lifted out of poverty by 2020.

Since 2016, the government has also been providing additional support to Canadian families through the Canada child benefit. Compared to the old system of child benefits which sent cheques to millionaires, the CCB gives low- and middle-income parents more money each month, tax-free, to help with the high costs of raising kids. I know this for a fact. I have two very precocious young daughters, who are the loves of my life, but it takes a few bucks to put them into some of their activities.

The CCB is simpler, more generous, and better targeted to give more help to people who need it most. Since its introduction in 2016, the CCB has lifted literally hundreds of thousands of kids out of poverty. That is something we need to applaud. It is a proud achievement of our government. In my riding, $59 million of Canada child benefit was distributed to residents. This helped out literally 15,000 or 16,000 young children. I know that every single one of those residents is grateful for this program and for the opportunity to receive something that helps them so much at home.

These investments and others our government is making in infrastructure, science, innovation, and skills and training, are all designed to achieve one goal: to ensure the benefits of a growing economy are felt by more and more people with good well-paying middle-class jobs, and people working very hard to join the “classe moyenne”.

We want Canadians to feel confident about the future, and be better prepared for what lies ahead. Part of achieving this entails making investments, and taking action to protect Canada's air, water, and natural areas for our children and grandchildren, while creating a world-leading clean economy. That is not just aspirational; it is happening today. There are literally hundreds of companies all over the world that are utilizing and testing technology for producing a cleaner environment.

Yesterday at the finance committee, I referenced how companies in Germany, for example, Daimler, are already turning trucks away from diesel and putting electric vehicles on the road. That is something that is very important. We must grasp these opportunities. That is why our government has put a focus on innovation, and research and development, so that the “supergrappes”, as they are called in French, the five clusters that we have identified, can ensure that Canadian companies are able to utilize or incentivize to create those world-leading technologies right here in Canada. That is something we need to do, and we are doing it.

Climate change is one of the most pressing challenges of our time. Unlike the party opposite, which in 10 years did not do anything, we have known from the beginning that inaction is not an option. That is why our government has worked for over two years to implement smart, practical measures to reduce emissions and protect the environment, while taking important steps to support literally tens of thousands of middle-class Canadians, 108,000 of whom live in my riding of Vaughan—Woodbridge, grow the economy and create good jobs.

Canadians know that addressing climate change and protecting the environment are important parts of ensuring a more prosperous and competitive economy for Canadians. This is exactly what the plan of “notre gouvernement” is delivering. We will put a price on what we do not want, pollution, in order to support things we need, including emissions reductions, clean innovations, and clean jobs, which are good middle-class jobs, for Canadians from coast to coast to coast. Through investments in greener infrastructure, cleaner transportation, energy efficiency, and emerging technologies, we will continue to help make our communities stronger, healthier, and more resilient. We believe this is the best way to support strong economic growth and secure a clean environment today and for many generations to come. That is what Canadians sent us here to do, and we are proud to do it.

We are doing the work that we spoke about during the election campaign. To use a hockey analogy, we are not ragging the puck; we are going to where the puck is, and we are going to make sure we score for Canadians. Whether it is through clean technologies producing those great jobs or leading innovations that will be adopted throughout the world, we will make sure our exporters and businesses stay competitive throughout this whole process. Frankly, 600,000 new jobs over the last two and a half years is not too bad at all.

Let me repeat that a clean environment and a strong economy go firmly hand in hand. We can have it no other way. This benefits all Canadians aujourd'hui, demain, and for all future generations.

[Pierre Poilievre, Conservative, Carleton, ON]

moved:

That, given the government's carbon tax will impose higher gas prices, and making “better choices”, as the Prime Minister suggested, will not help most Canadians heat their homes and buy groceries, the House call on the government to cancel plans for new taxes that would further raise prices on consumers.

Mr. Speaker, when prices rise, the effective salary of average Canadians drops; the distance their dollar will go shortens; and it becomes harder and harder for people to pay the bills. In recent months, we have seen this problem worsen. Inflation has reached its highest level in a very long time, well over the 2% target rate that is set by the Bank of Canada. This means that the goods and services on which people rely actually become more expensive and more difficult for people to afford at their current salary rates.

The hon. member for Calgary Shepard will be commenting on this, as I will be splitting my time with him today.

Furthermore, the cost of servicing the very large debt levels that Canadians shoulder is also on the rise. Just last week, RBC and TD significantly raised their posted rates for five-year fixed mortgages. In the case of RBC, they went up by 45 basis points or almost 10% of the total interest rate charged to the average mortgage borrower, from 5% to roughly 5.69%. This is on top of record gas prices that are afflicting motorists, particularly in British Columbia but starting to affect people right across the country.

One of the root causes of increased costs for consumers is most often forgotten, and that is the cost of government. Government represents over 40% of our entire economy. Thus, when the cost of government rises, the cost of everything else rises with it, and that is the focus of my remarks today. Let me dissect how growing government costs cascade down to consumers at all levels.

Let me start with the proposed Liberal carbon tax. The government has said it will impose a tax on anything that requires fossil fuels to produce or deliver. What does this mean to the average Canadian consumer? The government admits that the carbon tax would increase the cost of gasoline by at least 11¢ a litre at the pump. The Liberals admit that the average households would pay roughly $200 more per year to heat their homes. That is all they are prepared to admit.

They have not calculated how much this tax would increase the cost of groceries, which of course are transported by truck and rail. Therefore, when the transportation costs go up, the costs are passed on to consumers at the end of the day. The Liberals have not revealed how much costs will increase for other household expenses, such as electricity. In many, if not most, provinces, electricity is produced by some form of fossil fuel, whether natural gas, coal fire, or some other source that would be affected by this carbon tax. Even people taking transit might end up paying more for their transit passes because so many of our buses continue to run on gas, diesel, or natural gas, all of which will become more expensive once this carbon tax is fully imposed.

Finance Canada has released documents conceding that the cost of the carbon tax would cascade down to consumers through higher prices. I have obtained documents from Finance Canada estimating how much those costs would be for households, depending on their income. The only problem is that the government blacked out all the numbers on those documents. We know from the evidence I have obtained that there will be higher prices for Canadian households; we just do not know how much, because the government is concealing that information.

Before the House now is Bill C-74, the budget bill, which would impose a federal carbon tax of $50 per tonne of greenhouse gases.

The government is asking our permission, as the House of Commons, which has the exclusive power of the purse, to give the finance minister permission to impose this tax, without telling us what the tax will cost.

The basic principle of the power of the purse is that the government cannot tax what Parliament has not approved. However, Parliament cannot approve what it does know. Right now, we do not know how much this tax will cost average Canadians.

There is a whole series of estimates. Some estimate it will be $1,000 a household. Some estimate more, some slightly less, but the government will not say, even though it has performed all of the calculations. It knows; it just does not want Canadians to know.

This is a particularly insidious tax because all of its costs are embedded in other products. For example, the price of fresh fruit might become more expensive for a single mother, but she will not know what share of the extra cost of that fruit is the tax. She might assume that it is just that her local grocer has raised prices. In this way, the government is attempting to blame local shopkeepers, grocers, and other small businesses for rising prices that are really imposed by government.

Opposition Motion—Production of Documents on Carbon pricing

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

Mr. Speaker, I am pleased to have the opportunity to discuss this important element of Bill C-74 today. Our government has made it very clear that it believes the economy and the environment go hand in hand. Bill C-74 is proof of that.

We now have abundant and consistent evidence that our commitment to reducing greenhouse gas emissions and fighting pollution by fairly taxing carbon is helping grow our economy and Canada's middle class. Our commitment to reducing greenhouse gas emissions will also reduce pollution in the air we breathe.

Protecting the environment is everyone's responsibility, and our government is stepping up. With Bill C-74, the government will reduce emissions by enacting the greenhouse gas pollution pricing act. Pricing carbon pollution is the most effective way to reduce emissions. Pricing gives Canadian businesses and households an incentive to innovate more and make day-to-day choices that pollute less. Our government made that promise when it came to power over two years ago. We need to invest in growth while respecting the environment we share and helping to protect it.

The government's plan is to grow the economy in a way that strengthens the middle class and helps all Canadians succeed. What have we achieved in this regard?

From the time we took office, over 600,000 jobs have been created, most of them full-time. The youth unemployment rate is near its lowest on record. Since 2016, Canada has led the G7 in economic growth, and the federal debt-to-GDP ratio, which is our debt relative to our economy, is not only on a downward track but is projected to be near its lowest level in nearly 40 years.

We have energized the economy by investing in our communities and in our people. Small businesses are a key driver of our economy, accounting for more than 70% of all private sector jobs. That is why our government is supporting and investing in small businesses and helping hard-working business owners grow their businesses. Growth means more jobs, healthier families, and more vibrant communities.

We lowered the small business tax rate to 10% as of January 1, 2018, because we understand how much small businesses contribute to Canada's economy. As of January 1, 2019, the rate will be lowered to 9%. Canadian business owners and innovators will now save up to $7,500 a year in federal corporate taxes to help them do what they do best: create jobs.

By 2019, the combined federal, provincial, and territorial corporate tax rate for small businesses will be 12.2%. This is the lowest rate in the G7 and the third-lowest rate among OECD countries. Canadians deserve to be confident that their hard work will result in better opportunities, that they will have equal opportunities to grow professionally, and that they will be successful. We want Canadian business owners and Canadians as a whole to be confident in these things, and a lower small business tax rate will only support this goal.

I am talking about economic measures because I believe that it is possible to work on the economy and the environment at the same time, as the government has shown. I remind members of the Canada workers benefit, which is an improved version of the working income tax benefit. With this benefit, low-income workers will have more money in their pockets and people will get more support to find work. For example, a low-income worker who earns $15,000 could receive up to $500 more in 2019 than the amount he or she would have received in 2018 with the old benefit. Our government also wants to encourage more people to join the workforce. The workers benefit provides real support for more than 2 million Canadians who are working hard to join the middle class. The improved benefits in 2019 will bring about 70,000 Canadians out of poverty.

The investments we have made in Canadians, in our communities, in our economy, and in our environment are making Canada stronger and creating meaningful opportunities for all Canadians, and that is our objective. That should be our focus every day here in Ottawa. We have created prime economic conditions to help our businesses grow, do well in Canada, and be competitive in foreign markets.

We have done this by providing support through such organizations as the Canadian Trade Commissioner Service, the Business Development Bank of Canada, Export Development Canada, and Innovation, Science and Economic Development Canada.

The Business Development Bank of Canada serves 49,000 Canadian entrepreneurs and has committed $29 billion to small and medium-sized businesses. We are redoubling our efforts on the international front to make it clear to our international partners that Canada is the best place in the world to invest.

Why? It is because we have a workforce that is diverse, highly skilled, innovative, well educated, and hard-working. We have a wealth of natural resources. We have a modern, efficient infrastructure, because we have invested in that infrastructure and will continue to do so. We have a sound financial system, recognized across the world as a beacon of stability and efficiency because it is built on a foundation of sound regulation. Finally, of course, in budget 2018 it has been quite clear from the get-go that we in Canada believe in gender equality. We believe it strengthens the economy. When we say all working Canadians deserve the opportunity to earn a good living, we include Canada's talented, hard-working women.

All of us fortunate enough to live in this wonderful country could easily add to that list, but the essential message I want to convey is that Canada's fiscal house is in order, and that means we are resilient to shocks and uncertainty.

We want Canadians to feel confident about the future and to be better prepared for what the future holds. Yes, the government is doing that in part by making investments and taking action to protect Canada's water, air, and natural areas for our children, our grandchildren, and future generations while also creating a clean world-class economy, as I just mentioned.

Everyone knows that climate change is one of the most pressing challenges of our time, although to judge from some of the speeches from the opposition side today, it sounds like some people still need to be convinced.

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

I would like to underline that our approach to putting a price on carbon pollution has been collaborative from the start. The government worked with its provincial, territorial, and indigenous partners to adopt the pan-Canadian framework on clean growth and climate change in December 2016. The framework provides provinces and territories with the flexibility to choose between two systems: an explicit price-based system or a cap-and-trade system. Carbon pollution pricing is in place in four provinces, namely Ontario, Quebec, British Columbia, and Alberta, covering more than 80% of Canada's population. These provinces are also leading Canada in job creation and growth. All other provinces have committed to adopting some form of carbon pollution pricing. Under Bill C-74, the direct revenue from the carbon charges on pollution under the federal system would go back to the province or territory of origin.

In closing, I would like to reiterate that a clean environment and a strong economy go hand in hand and benefit all Canadians now and for future generations.

[Pierre Poilievre, Conservative, Carleton, ON]

moved:

That, given the Liberal government made a specific campaign promise to Canadians that "government data and information should be open by default, in formats that are modern and easy to use", the House hereby order that all documents be produced in their original and uncensored form indicating how much the federal carbon tax proposed in Budget 2018 will cost Canadian families in order to put an end to the carbon tax cover-up.

Mr. Speaker, I will be splitting my time with the member for Barrie—Innisfil.

As members know, the saga of the carbon tax cover-up has been ongoing now for several years, but today there are new developments. Just moments ago in the finance committee, we were studying Bill C-74, the government's budget implementation act, 200 pages of which are dedicated to the creation of a national carbon tax. Before the committee were officials from the environment and finance departments. I asked specifically whether or not either of those departments had modelled how much that tax would cost the average Canadian family. The assistant deputy minister of finance confirmed that in fact the government has modelled that information. In other words, the government knows the price tag but it is covering it up, and that, in essence, is the carbon tax cover-up.

Now that I have given today's news, I will lay out the chronology of events.

In late 2015, the Liberal government was elected. It had promised to institute a new carbon tax. Soon after that, I filed what is called an access to information request asking the government what such a tax would cost families in varying income groups. What would it cost middle-class people? What would it cost people below the poverty line?

The government came back with a big pile of documents, which the member for Barrie—Innisfil will be mentioning in his speech. One of these documents indicates, “This memo focuses on the potential impact of a carbon price on households' consumption expenditures across the income distribution.” The key findings are blacked out.

I will translate this government-speak into plain English. The memo focused on the potential impact of a carbon price on households' consumption. This means that the memo calculates what the tax will cost people when they buy things. It mentions “across the income distribution”, which means that the table which is blacked out tells us what people would pay based on the incomes they earn.

We know that the share of a family's budget is largely determined by how much the family makes. For example, Statistics Canada has shown that poor families spend about a third more on the goods that the carbon tax will apply to than do rich households, because if one is extremely wealthy, then heat, electricity, groceries, while they still cost the same or even a little more than they do for a low-income household, they are a smaller share of the family's budget. This is why it is important to know how much people in various income levels will pay with this new tax.

We know that taxes of this nature are regressive, because they take a larger share of household income from people who have less money. Those with the least disproportionately pay the most. As a result, such taxes can have the effect of actually widening the gap between rich and poor. The government has claimed that it wants to reduce that gap, but it is imposing a tax which is known to do precisely the opposite.

Then we come to the use of the revenues. What is the government going to use the money for when it collects it?

In Ontario, the Wynne government has given the blueprint. For example, Ontario has used the money to provide $15,000 in rebates to millionaires who buy electric Mercedes and Teslas. This is an example of a tax applied to working-class and low-income people which is then fed to the wealthiest 1% who can afford to drive the most elite vehicles. In that same province, the government has used the revenues to subsidize companies that would otherwise be money losing. They have, for example, increased hydroelectricity rates by paying these companies that offer so-called solar and wind power onto the grid at 90¢ per kilowatt hour when that kilowatt hour is worth about 2.5¢.

The effect of that is to drive up the electricity costs of everyday Ontarians, while bolstering the profits of well-connected Bay Street insiders, who successfully conclude those inflated contracts with the Government of Ontario. In Ontario the inflation of electricity prices is going to constitute a cost of about $170 billion over 25 years, according to the province's auditor general, which will make it the biggest wealth transfer from the working poor to the super rich in Canadian history. That is a form of redistribution that is common among regimes that impose schemes like the one the government has embedded in its budget implementation legislation, all of which reminds us that we should as Canadian parliamentarians know how much this tax will cost every household.

The government says that it cannot reveal that information for two reasons. First, it says that, for example, the table that I referred to earlier, is not relevant because it is a couple of years old and so much has changed.

While the fundamental structure of the Canadian economy has changed, the amount and share that people spend on heating their homes, driving their cars, and feeding their families has not fundamentally changed in two years. That being said, if the government thinks it is so irrelevant, why not just release it? Why not just show the numbers to Canadians and then convince them that those numbers are completely irrelevant? Does the government not trust Canadians to distinguish between relevant and irrelevant information? If it is obviously just a bunch of old numbers that have collected cobwebs over many months and years, then surely Canadians will just disregard it.

However, if the information in this table is based on a model of taxation that is in the current budget, then Canadians might, by contrast, say, “Wait a second. This is relevant. It is going to cost me a lot of money.” Then they may judge the government negatively for those costs. Maybe that is the real reason the government does not want to release the numbers.

The second reason the government is giving is it claims that this tax will be revenue neutral, that Canadians will get back the money somehow. It is the old trickle-down economics of socialist governments that it will take the money away from the working class and give it to the politicians. It will trickle down to the bureaucracy, and then it will trickle further down to the companies and interest groups that get the grants funded by those taxes, and eventually a few drops will trickle back down to the people who earned the money in the first place. This is the trickle-down government that we always see when parties of the far left take office.

If this is true, let us pretend for a moment that the government is telling the truth and that it plans to give all the money right back to the people who paid the tax in the first place. How can it prove that is the case if it will not tell us how much those same people will pay? We cannot judge whether the cost has been neutralized for an average family unless we know what that cost is, but the government will not tell us, which suggests that the government has a trick up its sleeve, that it wants this to be a money raiser, a cash grab, an issue of cold, hard cash for politicians to spend.

Canadians have seen this before in every province where this scheme has been implemented. In every single one, the governments have won and the taxpayers have lost. The politicians have had more money to spend and the individual households have had less money left in their pockets. That is the reality we have seen so far.

As Conservatives, we are the voice of the taxpayer, and we will fight every day to ensure that the government is not allowed to bring in another sneaky tax grab targeted at the middle class, and those working hard to join it. Rather, we will fight for transparency to end the carbon tax cover-up, and to leave money in the pockets of the people who earned it.