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

This bill is from the 42nd Parliament, 1st session, which ended in September 2019.

Sponsor

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-74s:

C-74 (2024) Law Appropriation Act No. 2, 2024-25
C-74 (2015) Canada-Quebec Gulf of St. Lawrence Petroleum Resources Accord Implementation Act
C-74 (2005) Modernization of Investigative Techniques Act

Votes

June 6, 2018 Passed 3rd reading and adoption of Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
June 6, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (recommittal to a committee)
June 6, 2018 Failed 3rd reading and adoption of Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (subamendment)
June 4, 2018 Passed Concurrence at report stage of Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
June 4, 2018 Failed Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
May 31, 2018 Passed Time allocation for Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
April 23, 2018 Passed 2nd reading of Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
April 23, 2018 Failed 2nd reading of Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (reasoned amendment)
April 23, 2018 Passed Time allocation for Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures

Bill C-74—Notice of time allocation motionBudget Implementation Act, 2018, No. 1Government Orders

May 30th, 2018 / 11:10 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Madam Speaker, I thank my colleague for his speech.

He is very energetic and passionate at this late hour, and that is to his credit. However, I would like to ask him a very specific question. The member for Sherbrooke spoke about this earlier today.

How is it that a government that wants to legalize marijuana is planning to tax people with prescriptions for medical marijuana?

The government is going to increase the fees and sometimes even the cost of marijuana, even though it is the only drug that works to assuage some people's persistent pain. Sometimes medication does not work and marijuana is the only thing that does. In recent months, desperate people have been coming to my office and asking for the Liberal government to listen to reason. They are saying that their costs are going to skyrocket and that they might have to go without the one drug that helps them because the Liberals want to tax it.

Bill C-74—Notice of time allocation motionBudget Implementation Act, 2018, No. 1Government Orders

May 30th, 2018 / 11:10 p.m.

Liberal

Mark Gerretsen Liberal Kingston and the Islands, ON

Madam Speaker, I appreciate the fact that we are debating the budget, so the questions will be on the entirety of the budget. My remarks today were specifically on the price on carbon. However, when it comes to the price of medicine and the costs associated with that, the government has a clear position on what it is going to do and how it is going to move forward. We are going to look at pharmacare. We are going to look at how we can make it affordable for people to get access to the medicines they need. It is preliminary to suggest how that will come out as it relates to medical marijuana, but I am certainly interested in seeing the results that come forward from the task force that has been set up to undertake that.

Bill C-74—Notice of time allocation motionBudget Implementation Act, 2018, No. 1Government Orders

May 30th, 2018 / 11:10 p.m.

Conservative

Rosemarie Falk Conservative Battlefords—Lloydminster, SK

Madam Speaker, I know we are hearing lots about carbon pricing, the carbon tax, and all this fun stuff. Where is the respect for provincial jurisdiction? I come from a province that has a climate change plan, and it is not being respected. The government is forcing a carbon tax on the people of Saskatchewan. I just want to know if he is proud of the lack of respect the government has for provincial jurisdiction.

Bill C-74—Notice of time allocation motionBudget Implementation Act, 2018, No. 1Government Orders

May 30th, 2018 / 11:10 p.m.

Liberal

Mark Gerretsen Liberal Kingston and the Islands, ON

Madam Speaker, there is respect. The respect is shown in the way in which the federal government is choosing to engage with the provinces in terms of setting up that price on carbon and how that money is going to be translated and used within the province. When it comes to certain issues, one of those being the effect on the environment nationally, the role of the federal government is to set policy and set direction and to then work with the provinces to implement that and see how they want to use the revenues they are going to be receiving from that.

Bill C-74—Notice of time allocation motionBudget Implementation Act, 2018, No. 1Government Orders

May 30th, 2018 / 11:15 p.m.

Conservative

Pat Kelly Conservative Calgary Rocky Ridge, AB

Madam Speaker, it is always a pleasure to rise in this place. It is a tremendous honour and privilege to represent the constituents of Calgary Rocky Ridge. Many of the constituents of Calgary Rocky Ridge have very strong feelings on the budget.

It is no mystery that our party is opposed to it. We are opposed to the budget implementation act. Notwithstanding the 400-odd amendments that have been introduced and suggested, we will do what we can to try to salvage something from it. We will see how it goes with the amendments. However, I do not think any number of amendments could possibly salvage the budget in total. I am rather down on the budget, as are most of the constituents whom I have spoken to about it.

There are several key aspects of the budget that really still need to be addressed.

When the budget came out, the book was about 400 pages long. The budget implementation act is similar in length. Nowhere in any of these documents will we see the words “balanced budget”. One might ask if that is important or is it an issue. It is important for two reasons.

First, it is prudent management to eventually either have a balanced budget or some kind of a plan toward a balanced budget. All 10 provinces and all three territorial governments are either currently running a balanced budget or have a clearly articulated plan and path toward a balanced budget. The only jurisdiction, the only government in Canada that does not have any type of plan whatsoever for a balanced budget is the federal government. The only finance minister in Canada among all the provincial and territorial governments, including the federal government, who does not have a plan for a balanced budget is the federal finance minister. That is disappointing for its own sake, or even just on the point of policy alone.

Why this is particularly disappointing is that the government ran on a very clear promise. On page 12 of the Liberal platform in the 2015 election, it states:

We will run modest short-term deficits of less than $10 billion in each of the next two fiscal years to fund historic investments in infrastructure and our middle class. After the next two fiscal years, the deficit will decline and our investment plan will return Canada to a balanced budget in 2019.

The Liberals promised no more than $10 billion in deficits. They promised to return to a balanced budget in 2019. This was not something they tucked away in some obscure part of their platform in hopes that nobody would notice. This is something they took to the doors. They said that there would be a modest deficit only to facilitate the infrastructure spending they had planned.

I want to depart from that for one moment and raise how the Liberals' infrastructure plan is going along. Not too long ago the Prime Minister made his first visit to Calgary in quite some time. He came to make a historic spending announcement while he was there in the name of the Liberals' infrastructure plan, $1.53 billion for the green line, an important infrastructure piece for the city of Calgary. It is a critical piece of infrastructure. The only problem is that these funds had been committed and announced by the previous government. The Liberals fly around the country re-announcing projects that were already announced in some cases, like this one, before they were even elected, taking credit for them, and expecting extraordinary credit for the projects. I do not want to digress too far. However, the point is that the budget is a broken election promise.

The Liberals promised no more than $10 billion in deficits and a return to a balanced budget by 2019. The finance minister will not acknowledge in any way that these commitments were made and ignores all questions put to him, including at committee, where he was asked repeatedly when the budget would be balanced. He ignored these questions.

That alone is enough reason to render the budget and its implementation act unworthy of support, but I want to move briefly to the carbon tax. The previous speaker devoted his time to a defence of the carbon tax. Let us even set aside the arguments for and against a tax on carbon; what about evidence-based policy and what about transparency and openness with Canadians?

The government refuses to tell Canadians what the tax will cost. Surely that is a minimum standard to which the government could hold itself, to just simply be honest with Canadians and share what the tax is going to cost as the Liberals compel provinces to adopt it—some of them against their will, some of them in contravention of their own climate change strategies that they have developed through carbon capture, such as the Province of Saskatchewan—without telling Canadians what this tax will cost them and while claiming that it is revenue neutral.

“Do we not know what revenue neutral means?” a member asked in an earlier debate on this. Most Canadians know that “revenue neutral” is code for “it is really going to cost us a whole bunch”, and Liberals will not tell us how much. The first part of revenue neutral that is flagrantly false is that there will be GST on the carbon tax that the federal government is going to collect. That is not revenue neutral. That is a tax on the tax, which the federal government is going to keep.

As for the latitude that the government says it is leaving provinces to decide how they will deal with the carbon tax, that is not revenue neutral to a family. If a family has to pay more tax on all the normal things that families spend money on, such as gasoline to get to work or to take their children to school, it does not matter whether they put gasoline in a car and drive a child to school or whether they pay the bus fee for their child; this tax would apply to all of them.

The tax puts giant holes in municipal governments' budgets, because municipalities have to pay this tax. They have to pay the tax when they fuel their buses so people can take public transit. They still have their cost increased and they still have to pay the carbon tax. Heating homes in a cold country and transportation are things that Canadians spend money on, and they are made more expensive by the carbon tax. I wish the government would please just spare us this talk of revenue neutrality, because it is not washing with Canadians. It really does not make any sense.

Perhaps the Prime Minister came closest to his true feelings when he encouraged Canadians to “make better choices” or change behaviour when people asked how they are going to be able to afford to fill their car with gas so they can go to work.

On page 290 of the budget, the finance minister basically took credit for pipelines that were yet to be built, such as the Trans Mountain expansion. The finance minister acknowledged the differential and the significant discount that Canadians receive for their energy products because of a shortage in pipeline and said that the revenue should improve because new pipe is going to reduce the differential.

Here we are. The pipeline is not any closer to being built. We just spent $4.5 billion on an old pipeline, without even finding out what the cost is going to be to build the new pipeline and deal with all the obstacles that were preventing it from being built by Kinder Morgan. The Liberals' own budget projections rely on new tax revenue that will result from a pipeline that is not even built yet.

Bill C-74—Notice of time allocation motionBudget Implementation Act, 2018, No. 1Government Orders

May 30th, 2018 / 11:25 p.m.

Winnipeg South Manitoba

Liberal

Terry Duguid LiberalParliamentary Secretary for Status of Women

Madam Speaker, I wonder if the hon. member would acknowledge that back in 2006, and I remember it well, the finance minister of the day left a $13-billion surplus, and the country was in deficit with the Harper government before the recession hit. Fast forward a few years, and the Harper government created a fake surplus by massively cutting veterans' organizations and women's organizations. That government closed status of women organizations and offices across the country. We know that they sold auto shares at a loss.

The hon. member spoke about evidence and evidence-based decision-making. Would he acknowledge those facts?

Bill C-74—Notice of time allocation motionBudget Implementation Act, 2018, No. 1Government Orders

May 30th, 2018 / 11:25 p.m.

Conservative

Pat Kelly Conservative Calgary Rocky Ridge, AB

Madam Speaker, I would caution the member on his assertion that many of the things he said are facts. I will point out to the member that we have heard this, usually not on the record and usually in heckles that occasionally come across from the other side, about the massive deficits that were incurred. We know that the Liberals, when they were in opposition, threatened to bring down the government because the deficit that was on offer to deal with an unprecedented financial crisis, in conjunction with our G7 partners, was not a big enough deficit for them. They were going to bring down the government, because the deficit was not big enough. They wanted the biggest deficit possible at the time.

I will take no lessons from the Liberals on deficits.

Bill C-74—Notice of time allocation motionBudget Implementation Act, 2018, No. 1Government Orders

May 30th, 2018 / 11:25 p.m.

NDP

Wayne Stetski NDP Kootenay—Columbia, BC

Madam Speaker, over the last two and a half years, we have talked a lot in the House about the need for pay equity and equality for women. This budget is called a gender and growth budget. I am wondering whether my colleague finds it curious that despite that title, gender and growth, there is very little in the bill. Would the Conservatives agree that we need pay equity now?

Bill C-74—Notice of time allocation motionBudget Implementation Act, 2018, No. 1Government Orders

May 30th, 2018 / 11:25 p.m.

Conservative

Pat Kelly Conservative Calgary Rocky Ridge, AB

Madam Speaker, the member brought up the issue of the budget's theme and title. What a cynical and disingenuous title and theme it is for a budget. It is insulting and condescending. It mentions the word gender some 400 times throughout, yet it imposes new taxes on women that many observers have pointed out will perhaps be disproportionately paid by women.

The shameless pandering of that party through the use of buzz words and distraction is indeed disappointing.

Bill C-74—Notice of time allocation motionBudget Implementation Act, 2018, No. 1Government Orders

May 30th, 2018 / 11:25 p.m.

Liberal

Lloyd Longfield Liberal Guelph, ON

Madam Speaker, in a previous question, I indicated, from Alberta.ca, the incredible success Alberta is seeing in the growth of its economy and the growth of its retail sector and exports.

In his presentation, the hon. member spoke about the carbon pricing program in Alberta. I want to draw to his attention that a family of four--

Bill C-74—Notice of time allocation motionBudget Implementation Act, 2018, No. 1Government Orders

May 30th, 2018 / 11:25 p.m.

The Assistant Deputy Speaker Carol Hughes

Order. If I am having trouble hearing the question, it is a problem, and it is a problem as well for the person who will have to answer the question, which I know he is very capable of. Instead of having discussions back and forth between other MPs, they should wait and stand to ask questions, if they wish.

Could the hon. member for Guelph please wrap it up?

Bill C-74—Notice of time allocation motionBudget Implementation Act, 2018, No. 1Government Orders

May 30th, 2018 / 11:25 p.m.

Liberal

Lloyd Longfield Liberal Guelph, ON

Madam Speaker, a family of four with an annual income of $95,000 will receive a $540 tax cut in a situation where they paid $500, so they will actually get more money back as a result of the carbon pricing program.

Would the hon. member not agree that the people of Alberta are creating tremendous growth in their province and succeeding with the tax benefits through the carbon program?

Bill C-74—Notice of time allocation motionBudget Implementation Act, 2018, No. 1Government Orders

May 30th, 2018 / 11:30 p.m.

Conservative

Pat Kelly Conservative Calgary Rocky Ridge, AB

Madam Speaker, that member is tonight hitting it out of the park. We can clip his comments and put them into our householders and our next election material.

My province has been through a devastating economic collapse. When we drop anything from high enough, it will bounce a little bit when it hits the bottom.

Bill C-74—Notice of time allocation motionBudget Implementation Act, 2018, No. 1Government Orders

May 30th, 2018 / 11:30 p.m.

Liberal

Dan Ruimy Liberal Pitt Meadows—Maple Ridge, BC

Madam Speaker, it is with great pleasure that I rise in this House today to discuss Bill C-74, Budget Implementation Act, 2018, No. 1.

It is no secret that with our 2018 budget, our government has committed to putting people first and ensuring equal opportunity and fairness for all Canadians. Part of that commitment means taking steps forward to advancing equality, especially for women. This is not only the right thing to do but also the smart thing to do, because we know that equality between Canadian women and men will lead to greater prosperity for all Canadians.

We are doing this through a number of initiatives, including introducing a new employment insurance parental sharing benefit to support more equal parenting roles, as well as other initiatives to support greater participation of women in the workforce. We will also be putting forward proactive pay equity legislation to ensure that women and men in the federally regulated public and private sectors receive equal pay for work of equal value. These are just some of the budget 2018 measures aimed at promoting greater gender equality in Canada.

It should also be noted that in the spirit of putting people first, we are also taking steps to improve how our government delivers its services to all Canadians. We understand that Canadians expect services to be high quality, accessible, secure, and digitally enabled.

When it comes to the services provided by Employment and Social Development Canada, more commonly known as ESDC, we strive to meet and exceed those expectations. Since taking office, our government has listened to Canadians and worked hard to ensure that they get the best services possible. These efforts are reflected in the investments made in each of our budgets, and this budget is no different.

Budget 2018 will enable ESDC to explore modern approaches to service delivery, beginning with employment insurance. This budget committed to providing stable and predictable funding of up to $90 million over three years, starting in 2018-19, for employment insurance claims processing and service delivery for all Canadians.

Building on earlier investments, we have proposed an additional $127.7 million over three years to sustain service capacity and improve accessibility to call centre agents so that Canadians can receive timely and accurate information and assistance with their El benefits. These services and channels are vital to Canadians, and it is of the utmost importance that we support a modern service delivery system that functions smoothly and works for all.

In budget 2018, we promised to make significant new investments to bolster federal government operations. We made this promise because want to ensure that all Canadians receive the services they need and deserve, especially people from more vulnerable populations. This includes doing more to better serve indigenous peoples in Canada. That is why we committed to providing funding to help more indigenous peoples access the full range of federal social benefits, including the Canada child benefit, the Canada pension plan, and old age security. We will be accomplish this by expanding outreach efforts to indigenous communities, and by conducting pilot outreach activities for urban indigenous communities.

We also know that Canadians rely on a broad range of supports in their communities. To make sure that people get the help they need, the Government of Canada provides funding to organizations across the country that deliver social services to Canadians. We are talking about services provided to vulnerable populations such as indigenous peoples, low-income Canadians, LGBTQ2 Canadians, newcomers, seniors, and persons with disabilities.

As announced in our latest budget, we will reallocate $7.8 million over five years to increase awareness and understanding of available funding, and help organizations that serve vulnerable populations build much needed capacity.

With Bill C-74, we are also making important amendments to the Department of Employment and Social Development Act that will improve how Service Canada serves Canadians. Each year, ESDC spends more than $122 billion on programs and services for Canadians. That includes employment insurance payments, the Canada pension plan, old age security, the guaranteed income supplement, and an additional $1.9 billion dollars in grants and contributions.

Service Canada is an important partner in this work. Currently, the Department of Employment and Social Development Act provides Service Canada with the authority to deliver only ESDC programs and services. It does not provide for Service Canada to deliver other federal government programs and services or for delivery partnerships. Simply put, it just does not make sense.

We want to make sure that Canadians can benefit from a service delivery model that is better integrated so that they can more easily access the full range of federal services available to them. We can accomplish this by allowing other departments to use the Service Canada network.

Right now, for this to happen, the government must provide authority on a case-by-case basis. This approach hinders ESDC's ability to carry out its current service delivery responsibilities and to respond to evolving partnership opportunities. The changes we are proposing in Bill C-74 will fix this. The bill proposes to give Service Canada the authority to provide services to the public on behalf of partners, including federal government institutions and other levels of government. Specifically, Bill C-74 proposes to clarify accountability between ESDC and service partners related to the management of Canadians' personal information.

The bill would also allow ESDC and service partners to recognize and use the Canada Revenue Agency's business number to manage business identity and allow ESDC to recover costs from and spend revenues on behalf of service delivery partners. For Canadians and Canadian businesses, this will mean better and more convenient access to the services they need.

The proposed amendments we are seeking through Bill C-74 would broaden the minister's mandate to provide service delivery for partners and help deliver better services to Canadians, including online services. With these changes, ESDC will be able to partner with federal institutions, provinces, territories, municipalities, and specified indigenous organizations without holding up the services that Canadians need and deserve.

I encourage all members of the House to support Bill C-74 and the much-needed amendments to the Department of Employment and Social Development Act. Let us continue to ensure that Canadians receive the kind of services they deserve: high-quality, accessible, secure, and digitally enabled.

Bill C-74—Notice of time allocation motionBudget Implementation Act, 2018, No. 1Government Orders

May 30th, 2018 / 11:35 p.m.

Conservative

Dan Albas Conservative Central Okanagan—Similkameen—Nicola, BC

Madam Speaker, I certainly appreciate my fellow member from British Columbia and his presentation tonight. It is always good to have different views on these subjects.

The member mentioned at the beginning of his speech that he was in support of a benefit that would allow for a spouse to extend benefits to encourage both partners to spend time with their child in its first year. However, the leader of the official opposition, the member for Regina—Qu'Appelle, has put forward a private member's bill that would allow a couple to retain more of their income. It would also allow a single parent who is struggling to raise a child by herself or himself to be able to do so.

However, the benefit that the member mentioned would do absolutely nothing for single parents. Does he not think there should be more supports for couples at that very important time, and will he vote for the leader of the official opposition's private member's bill?