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.

Motions in Amendment

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

Madam Speaker, I thought we were talking about Bill C-74. I realize that the indexation of the Canada child benefit is included in this bill. The NDP has not moved any amendments to remove that indexation, unlike the Conservatives, who want to delete every clause in the bill.

That being said, I have not been approached by a single constituent praising the merits of the Canada child benefit. What the committee heard about on a regular basis was the lack of universal affordable child care in Canada. Although Quebec has an excellent system, Canadians in the rest of the country struggle to find affordable child care. That is a recurring theme at the Standing Committee on Finance.

I just want my colleague to know that the lack of universal, affordable, high-quality child care is hindering our country's economic development and limiting women's participation in the workforce. That is a recurring theme, but the government is still doing nothing to address the issue.

[Mike Lake, Conservative, Edmonton—Wetaskiwin, AB]

Madam Speaker, I oftentimes disagree with my colleagues from the NDP, but I like to find common ground when we can. One of the things we found common ground on was during the election campaign, when both our parties ran on the idea of balanced budgets. Of course, roughly 60% of Canadians voted for a party that ran on a balanced budget platform. The other 40% voted Liberal, and they voted for a party that promised to balance the budget by 2019. We hear now from the Parliamentary Budget Officer that the budget will be balanced by 2045, at best.

I think back to a similar era, a Trudeau era, in the 1970s, when a prime minister Trudeau ran budget deficits in 14 out of 15 years. We paid the bill for those budget deficits in the mid-1990s with $35 billion in cuts to health care, social services, and education. While the hon. member was probably not alive at that time, he can certainly understand the importance, I am sure, and maybe he would want to speak to the potential for future generations to be paying for these massive, unplanned Liberal budget deficits.

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

Madam Speaker, I want to thank the member for giving me an opportunity to talk about the highly progressive fiscal framework we proposed in 2015. Our vision was to make bold investments for the future while raising the revenue we needed to finance top-notch programs. Unfortunately, that vision may not be shared by the Conservatives.

That said, the government's budget documents show that public debt charges will shoot up in the coming years, increasing from $28 billion to about $35 billion. I do not have the figures with me today because I had not been expecting this question. That $35 billion a year is going straight into the pockets of Canadian and foreign banks and high-finance executives. In our opinion, that money is not going to the right place.

Interest rates will keep going up, which is why, according to the government's budget projections, $35 billion a year will soon be lining the pockets of the big bankers and financiers of the world.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Madam Speaker, I am very pleased to speak this evening. I would like to acknowledge those watching and following the debate on the budget at such a late hour. I am sure that they will be pleased to hear me speak to Bill C-74, budget implementation act, 2018, No. 1. This bill implements certain measures from budget 2018.

I will be talking about the EI system. I want to focus on a measure that I think is very important for Canadians, the modernization of the rules around working while on claim.

We want to improve the working while on claim pilot project. The provisions of working while on claim help claimants stay connected to the labour market by encouraging them to accept available work and earn extra income, while receiving employment insurance benefits. Under the rules of the current pilot project, claimants can keep half of their benefits for every dollar earned up to a maximum of 90% of the weekly insurable earnings. This pilot project is ending at the end of August 2018.

We intend to make amendments to the Employment Insurance Act in order to make the rules for the current pilot project permanent by default. To implement this measure, we plan to spend almost $352 million over five years, beginning in 2018-19, and $80 million every year after that.

We will also put in place transitional provisions for those claimants who have chosen, under the current pilot project, to revert back to the rules of the former pilot project launched in 2005. The claimants will continue to benefit from these optional rules until August 2021, which will give them three years to adapt to the new permanent rules.

We want to include maternity and sickness benefits. These provisions already apply to parental and caregiving benefits, but they do not currently apply to maternity and sickness benefits.

Canadians who wish to stage their return to work after an illness or the birth of a child have limited flexibility to do so without jeopardizing their EI benefits. Extending the new working while on claim benefits to maternity and sickness benefits will give affected Canadians greater flexibility. They will be able to keep a good part of their EI benefits if they wish to prepare to return to work.

The measures I just mentioned benefit all employment insurance claimants, including seasonal workers.

I will now talk about support for seasonal workers. Our government is aware of seasonal workers' concerns and the difficulties that some of them are having. That is why we announced a series of measures in budget 2018 to help ensure that unemployed workers in seasonal industries have access to the supports they need when they need them most.

First, we are allocating $10 billion from existing departmental resources to provide immediate income support and training to affected workers. In that regard, we are developing agreements with key provinces, such as Quebec—where I proudly represent Rivière-des-Milles-Îles—New Brunswick, and Prince Edward Island, to provide that money. Funding will be available as soon as an agreement is signed so that seasonal workers have access to programs and support as quickly as possible.

We have already signed a $2.5-million agreement with the Government of New Brunswick. That additional funding will allow the province to offer seasonal workers seven weeks of work experience, workplace essential skills training, or general essential skills training with income support. Support will be offered to workers in the fishery, the agricultural industry, the forestry industry, and the tourism industry in the most affected areas of New Brunswick. I hope that there are people from New Brunswick listening to us this evening.

Other agreements will be announced soon.

Our government is also proposing to invest $80 million in 2018-19 and $150 million in 2019-20 and to work with the provinces in order to come up with local solutions to help seasonal workers.

We will be using the tools available to us, such as labour market development agreements. Together, we will find solutions that will help better adapt the employment insurance system to regional market conditions. Canada is vast and its regions differ from one another. It is important to be able to adjust to the different regions.

In closing, since being elected, we have set out to improve the employment insurance system to bring it more into line with the realities of today's workforce, since we want it to serve workers and employers. The legislative changes I just talked about are part of that commitment, and passing Bill C-74 is the next step toward achieving our objective.

I strongly recommend that all my colleagues in the House support this bill so that we can continue to support Canadian workers and families and, by extension, the middle class and those working hard to join it.

Bill C-74—Notice of time allocation motion

[Jean-Yves Duclos, Liberal, Minister of Families]

Madam Speaker, I regret to inform the House that an agreement could not be reached under the provisions of Standing Orders 78(1) or 78(2) concerning the proceedings at the report stage and the third reading stage of Bill C-74, an act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures.

Pursuant to the provisions of Standing Order 78(3), I give notice that a minister of the crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings at the said stages.

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

Madam Speaker, I appreciate the member's contribution in this place. We all want to see good things happen in this country. However, the minister has given notice that fewer members of Parliament will be able to speak to an important piece of legislation. Given what we have just heard, how does the member feel about the fact that other members of Parliament, even in her own party, will be denied the ability to speak to the budget implementation bill? Again, there are over 20 divisions.

First of all, does she support cutting off debate in this way? Second, whatever happened to the commitment by the Liberals to allow full scrutiny of omnibus legislation? In fact, they originally said that they would not conduct omnibus budget legislation. She can answer those two things.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Madam Speaker, I must say that I am quite frankly surprised by my colleague's comments. On the other side of the aisle today, they tried to adjourn the debate to stop us from sitting. Now I am talking about our budget, which is amazing. I do not understand. We absolutely must talk about our budget. I did not hear my colleague ask any questions about the 600 jobs that have been created since 2015, since we came to power. He did not mention that. I am sure that the Canada child benefit is making a huge difference. This $600 per child every month, across Canada, is generating unbelievable economic growth—

[The Assistant Deputy Speaker, Carol Hughes]

Order.

I just want to remind members that there is no going back and forth. The hon. member who asked the question had the opportunity to ask the question without interruption, and I would hope that he will ensure that he provides that respect back.

Questions and comments, the hon. member for Saanich—Gulf Islands.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, it is an honour to rise tonight in this place to ask questions about the budget implementation bill. I appreciate that the hon. member did not speak to this specifically, but I keep waiting to see a budget bill from the current government that encompasses the climate action of budget 2005.

The current Minister of Public Safety and Emergency Preparedness was then the minister of finance. The hon. members of the Liberal Party can speak with the Minister of Public Safety about why budget 2005 included so many more actions that reduced greenhouse gases than the budget we have before us today. I wonder if my hon. colleague across the way has any thoughts as to why this budget would do so little to reduce greenhouse gases.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Madam Speaker, I appreciate my colleague's question.

I am so proud to be part of a government that links economic growth with sustainable development, that is ensuring that we control greenhouse gases, and that will meet the Paris targets. We are clearly working very hard to manage the environment and we are definitely headed in the right direction.

[Mike Lake, Conservative, Edmonton—Wetaskiwin, AB]

Madam Speaker, I am going to ask two questions and give the hon. member the option to answer one or the other.

Here is one promise that was made in the Liberal platform in 2015: “After the next two fiscal years, the deficit will decline and our investment plan will return Canada to a balanced budget in 2019.” I am asking when that will happen.

The second promise that I want to read from the Liberal platform was just brought up by my hon. colleague here. The promise was regarding omnibus bills. It stated, “We will change the House of Commons Standing Orders to bring an end to this undemocratic practice.” When will that happen?

I want to give the hon. member the option to answer one of those two questions.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Madam Speaker, my reply to my hon. colleague is that we are now going to achieve a goal that has eluded us for 40 years. In fact, Canada has the best debt-to-GDP ratio of all G7 countries. We have not seen that in 40 years.

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

Madam Speaker, it is a pleasure to rise today to speak to the budget implementation bill. In particular, today I will be focusing my comments on the carbon pricing system that the government is proposing to put in place.

Our government is taking very seriously the challenges and opportunities presented by the threat of climate change and the evolution of clean growth. We have already announced historic investments in public transit, green infrastructure, and clean innovation, as well as a plan to put a price on carbon pollution across the country.

Canadians know that pollution is not free. In recent years, Canadians have encountered more frequent and extreme weather events, such as forest fires and floods. Disasters have cost billions of dollars in damages to taxpayers. As the climate changes, this will only get worse. Many people have lost homes and businesses.

For the last decade, the party opposite refused to act on climate change, and some outright denied that it was even real. In failing to implement a credible plan, they put our environment and our economy in jeopardy.

Today, we can no longer drag our feet. We need to act, and that is exactly what we are doing.

A central pillar of the plan is a price on pollution, which is widely recognized as one of the most efficient ways to curb greenhouse gas emissions. It also encourages people and businesses to save money and make cleaner choices, such as better insulating their homes and upgrading to more efficient equipment. As a result, carbon pricing is a foundation of Canada's clean growth and climate action plan. Pricing pollution has a track record of success in the world and here in Canada, where it has helped us tackle problems, such as acid rain, while supporting clean growth and innovation. A price on carbon is already in effect in nearly half the world's economy.

New analysis by Environment and Climate Change Canada confirms that a price on pollution across Canada would significantly reduce carbon pollution while maintaining a strong and growing economy. The study found that carbon pricing could reduce carbon pollution by up to 90 million tonnes across Canada in 2022, as much as taking 26 million cars off the road or shutting down more than 20 coal plants. Carbon pricing would make a substantial contribution to Canada's 2030 target, but it is not the only thing we are doing to cut emissions. Canada's climate plan includes many other measures that work together with carbon pricing to reduce pollution.

The study also found that GDP growth would remain strong with a nationwide price on carbon pollution. Canada's GDP is expected to grow by approximately 2% per year between now and 2022, with or without carbon pricing.

This does not include the huge opportunity of clean innovation. Carbon pricing would help Canadian companies create jobs and compete successfully in the global shift to cleaner growth, an opportunity the World Bank estimates will be worth $23 trillion globally between now and 2030.

More than 80% of Canadians already live in jurisdictions with carbon pricing in place. Our approach recognizes the actions already taken by B.C., Alberta, Ontario, and Quebec. Those provinces had the strongest economic growth in the country last year. The pan-Canadian approach builds on the leadership taken by these jurisdictions and provides all provinces and territories the flexibility to implement the type of system that suits their circumstances. It also sets some common criteria to ensure that the price on pollution is fair and effective across the country.

To ensure that a price on carbon pollution is in place across Canada, the government committed to develop and implement a federal carbon pricing system in any province or territory that requests it, or that does not have a carbon pricing system that meets the federal standard.

Today, governments pricing carbon pollution in B.C., Alberta, Quebec, and Ontario use the revenues in a variety of ways. They can return money directly to households and businesses, cut taxes, or fund programs that reduce the cost of clean technology.

Provinces and territories have until September 1 to confirm their carbon pricing approach. Direct revenue from the application of the federal carbon pricing backstop will remain in the jurisdiction of origin.

In 2017, the four provinces with carbon pricing systems in place, which were British Columbia, Alberta, Ontario and Quebec, were also the top four performers in GDP growth across the country. That is the result of a long list of factors, but anyone who says carbon pricing hurts economies is not basing their argument on the evidence.

Since 2007, British Columbia's carbon tax has reduced emissions by between 5% to 15%. Meanwhile, provincial real GDP grew by more than 17% between 2007 and 2015, and per capita gasoline demand dropped by 15% over that period. British Columbia's growing clean technology sector now brings in an estimated $1.7 billion in annual revenue. We see the same results in other countries. In Sweden, which has the world's highest carbon tax at 137 euros per tonne, GDP and industry have grown while emissions have dropped.

In addition to estimating the costs, it is important to consider the benefits of reducing pollution. This includes the avoided costs of climate change, the long-term financial benefits of transitioning to a cleaner economy, and the benefits that may flow from innovations driven by carbon pricing.

Pollution from coal power plants results in health issues that cost the health care system over $800 million annually, according to a study from 2014.

Canadian businesses already know that carbon pricing makes good sense and will help to ensure that they remain competitive in the emerging low-carbon economy. Carbon pollution pricing helps Canadian companies to create jobs and compete successfully in the global shift toward clean growth, an opportunity that the World Bank estimates will be worth $23 trillion globally between now and 2030.

About 85% of the Canadian economy is already subject to a carbon pricing system, and every province has committed to adopt some form of carbon pricing.

Canada is creating a business environment that will strengthen and grow the clean economy. Success stories include CarbonCure, a business that retrofits concrete plants with a technology to recycle carbon dioxide to make stronger, greener concrete; and Solar Vision, a Quebec-based business providing solar lighting technologies; and many more examples.

The impacts of a changing climate are already being felt. From 1983 to 2004, insurance claims in Canada from severe weather events totalled almost $400 million a year. In the past decade, that amount tripled to more than $1 billion per year. Canadians expect polluters to pay because it is the right thing to do for our kids and grandkids.

We know that the costs of inaction are much greater than the costs of taking action now. Taking strong action to address climate change is a critical and urgent step, and making sure there is a carbon price across the country is a matter of fairness for all Canadians.

Canadians deserve a plan that spurs innovation and creates well-paying middle-class jobs. They deserve a serious, smart, and thoughtful plan to protect the environment and grow the economy, and that is exactly what this government is delivering.

I would also like to add that I very much appreciate the participation by the Minister of Innovation and Science in today's debate and for making sure that all of the relevant points in my speech were highlighted effectively.

[Alupa Clarke, Conservative, Beauport—Limoilou, QC]

Madam Speaker, I would ask the member for West Nova to be a reasonable person. I do not know how many times he said that we need to address climate change in a serious way. I am sure he listened to me tonight when I mentioned all of the programs that we put together, like the Canada EcoTrust for $1.5 billion, which represented great federal co-operation with the province in reducing gas emissions.

The member has recited many numbers from the IMF, the World Bank, and the United Nations. Could he give us a number from his government as to how much the Liberal carbon tax will cost each family? He has cited numbers from all of those international organizations, but he is part of a government that has numbers hidden somewhere. How much is the Liberal carbon tax going to cost each family? Can we know this number, please?

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

Madam Speaker, if the opposition has been listening since this debate started, it will know that the manner in which people are going to be taxed, the manner in which the price on carbon is going to be introduced, is going to be based on an agreement between a province and the federal government. It is going to be different in each jurisdiction.

Furthermore, it all depends on how the money is going to be used. If the province decides to give that money back and cut cheques to people, it will be neutral. It all depends on how the province decides and plans to use the money. That point has been made over and over again. I know the opposition wants to continue to ask the question, because it thinks it is going to get the “gotcha” moment at some point, but the reality of the situation is that it is as clean and clear as that. It comes down to how the provinces decide to use the funds they generate.