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.

Bill C-74—Notice of time allocation motion

[The Assistant Deputy Speaker, Carol Hughes]

As we resume debate, I want to advise the next speaker that, unfortunately, I will have to stop the debate, but he will be able to continue at a later date.

The hon. Parliamentary Secretary for Status of Women.

[Terry Duguid, Liberal, Parliamentary Secretary for Status of Women]

Madam Speaker, it is indeed a privilege to be the final speaker in these final few minutes of Tuesday, May 30. When it comes to Canada's economy and the environment, our government has been absolutely clear that we believe the two go hand in hand. Canadians understand that pollution is not free. 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 currently before this 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 our middle class and helps people who are working hard to join it, is already paying off. Let us take a look at the results of our plan so far. The parliamentary secretary to the Minister of Public Services highlighted some of these. Since the government was elected, more than 600,000 jobs have been created, most of them full-time. Canada's unemployment rate is at the lowest level we have seen in 40 years. Finally, since 2016, Canada has led the G7 in economic growth.

[The Assistant Deputy Speaker, Carol Hughes]

The next time this matter is before the House the member will have eight minutes and 40 seconds to finish his speech.

The House resumed from May 30 consideration of Bill C-74, an act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, as reported (with amendments) from the committee, and of the motions in Group No. 1.

Report Stage

[The Speaker, Geoff Regan]

The Parliamentary Secretary for Status of Women has eight and a half minutes remaining.

[Terry Duguid, Liberal, Parliamentary Secretary for Status of Women]

Mr. Speaker, I started two minutes to midnight last night by stating that when it came to Canada's economy and environment, our government was very clear. We believe the two go hand in hand.

Canadians understand that pollution is not free. They understand, as we do, that the most effective way to reduce greenhouse gas emissions is to put a price on carbon pollution.

I ended the evening by taking a look at the results of our plan so far.

Since the government was elected, more than 600,000 jobs have been created, most of them full-time. Canada's unemployment rate is at its lowest level in more than 40 years. Since 2016, Canada has led the G7 in economic growth. As well, the federal debt-to-GDP ratio, which is our debt relative to our economy, is not only on downward track, it is projected to be near its lowest level in nearly 40 years.

From these results, it is obvious that investing in our communities, in our people has been very good for our economy.

We have also taken steps to ensure a good business climate. We believe Canada is the best place in the world to invest and to do business, and we want to ensure it stays that way. We know low and competitive tax rates allow Canada's entrepreneurs to invest in their businesses and create even more good, well-paying jobs. That is why we cut the 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 will mean up to $7,500 in federal corporate tax savings per year to help Canadian entrepreneurs and innovators do what they do best, create jobs. That is good news for Canadian business and great news for the hard-working people who help these businesses succeed every day.

Let me turn to supporting parents by strengthening the Canada child benefit. Since 2016, the government has also been providing additional support to Canadian families through the CCB. Compared to the old system of child benefits, the CCB gives low and middle-income parents more money each month, tax free, to help with the high cost of raising kids. 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 helped lift hundreds of thousands of Canadian children out of poverty. Thanks to the CCB, nine out of 10 Canadian families have extra help each month to pay for things like summer camps, new bikes, and back-to-school clothes. Families who receive the CCB will get, on average, about $6,800 this year. That is money they are spending in their communities, supporting local businesses, helping to create more good, well-paying jobs for Canadians.

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

We want Canadians to feel confident about the future and 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.

None of us need to be told that climate change is one of the most pressing challenges of our time. That is why the government worked with provincial, territorial, and indigenous partners to adopt the pan-Canadian framework on clean growth and climate change in December 2016. The plan provides provinces and territories with the flexibility to choose between systems: an explicit price-based system or a cap and trade system, which is prevalent in a number of our larger provinces.

A price on carbon pollution is already in place in four provinces: Ontario, Quebec, British Columbia, and Alberta, covering over 80% of the Canadian population. By the way, these provinces are also leading Canada in job creation and growth. All other provinces have committed to adopting some form of carbon pollution pricing.

The direct revenue from the carbon charges on pollution under the federal system would go back to the province or territory of origin. We have emphasized that many times in this place. 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 very proud to do it.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, it is unfortunate that during the campaign, we heard clear promises of no more omnibus bills, no more closure, yet it is happening all the time with the Liberal government.

The budget implementation bill has over 540 pages, an omnibus bill. Over 200 pages of that bill deal with the carbon tax, yet there is not one word about two things: first, how much it will cost the average family; and second, how much greenhouse gas reduction there will be from this carbon tax. The member calls it carbon pricing, but we all know it is a tax.

I would like my colleague to answer the question, which hae been asked multiple times in the House. How much will the carbon tax cost the average Canadian family and how much greenhouse gas reduction will result from the carbon tax?

[Terry Duguid, Liberal, Winnipeg South, MB]

Mr. Speaker, I will say something that has been repeated in the House many times. Eighty per cent of our country has a price on carbon. I will use the example of British Columbia. A price on carbon was put in place over 10 years ago and Premier Campbell at the time said that it should be revenue neutral. The price on carbon was put in place and the people of British Columbia received a tax cut. It was revenue neutral.

As the hon. member well knows, the provinces will have the choice in how those funds are distributed. All of the funds will go back to the provinces.

[Sheila Malcolmson, NDP, Nanaimo—Ladysmith, BC]

Mr. Speaker, the government, the Liberal Party, has been promising pay equity implementation since 2004. Given that the all-party committee asked that the government table pay equity legislation by June 2017, which is now a year late; given that last year the labour minister said that the consultation on pay equity was complete, which we thought was complete in 2004; and given that the Canadian Centre for Policy Alternatives in last year's alternative federal budget asked that the government budget $10 million a year to implement pay equity for federally regulated industries and this year the Canadian Labour Congress said to at least fund the establishment of the pay equity commissioner's office, why on earth is there nothing in the budget implementation bill for this long promise, actually a 42-year-old promise, by the Liberals?

[Terry Duguid, Liberal, Winnipeg South, MB]

Mr. Speaker, the member for Nanaimo—Ladysmith is a very active member of the Standing Committee on the Status of Women, on which I sit on behalf of the minister. I thank her for her advocacy and hard work.

I think most of us in the House believe that pay equity is long overdue. It will be introduced this fall, proactive pay equity legislation, along with pay transparency.

I want to remind the hon. member of all the other things, though, that we have done to advance equality in our country under the leadership of the Minister of Status of Women. The sustainability of the women's movement has been a major preoccupation of our minister. There are $100 million over five years for a gender-based violence strategy; $200 million over five years; support for women entrepreneurs and women in the trades.

We are on the march, and we should be advancing gender equality in our country.

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, I am hearing about the importance of the provincial and territorial relationships with the federal government, whether it is on labour and pay equity or carbon pricing programs, and how important it is for the federal government to have a working relationship with the provinces and territories, something that the previous government did not have. Could the member please comment on that?

[Terry Duguid, Liberal, Winnipeg South, MB]

Mr. Speaker, the former prime minister met twice with the premiers in 10 years. Our Prime Minister has met with them numerous times. His door is open. On something like the pan-Canadian framework or the Canada health accord, we have been getting things done because we collaborate with our provinces.

[Rosemarie Falk, Conservative, Battlefords—Lloydminster, SK]

Mr. Speaker, I appreciate the opportunity to speak to Bill C-74, the Liberal government's budget implementation bill. When we consider the contents of the bill and the Liberal government's track record, it reveals a troubling path ahead for Canadians.

We have before us a budget bill that spends borrowed money recklessly. The result of that is a growing debt and higher taxes. Borrowed money always has to be paid back and it is paid back at a premium.

The Liberal government came into power touting modest deficits. The Prime Minister repeatedly promised Canadians that his government would borrow a modest $10 billion a year to grow the economy. He also promised Canadians that the budget would return to balance in 2019. That promise went out the window very quickly.

The Prime Minister has added $60 billion to the national debt in just three short years. Canada's net debt has reached an all-time high of $670 billion. To put that into context, that breaks down to a debt of over $47,000 per Canadian family. What about the plan to return to balance? The budget is not predicted to return to balance until 2045, a far cry from 2019.

The Liberals will wrongly try to take credit for the economic growth that Canada experienced in 2017. A growth rate of 3% in 2017 was largely a result of the oil and gas sector recovering and an unusually strong housing market. The responsible response to that growth should have been for the government to pay down the debt that it borrowed, so in the case of a fiscal downturn, we would be better positioned. However, now, despite all the Liberal spending, private sector forecasts show that Canada is heading for a slow down.

We have legislation before us to help us spend more money and add more debt. Ultimately, it is legislation that would make life more unaffordable for Canadians.

Canadians are already paying higher taxes under the Liberals. It seems that the Liberal government is always finding new ways to dip into the pockets of Canadians. For one, this budget bill would create a costly new carbon tax, which the Liberals are forcing on all provinces that do not have their own. Despite promises of a new era of co-operative federalism, the Liberal government is ramming ahead with its massive carbon tax grab.

My province of Saskatchewan has rejected the Liberal government's carbon tax, and rightly so. The carbon tax will come at a significant cost to the people of Saskatchewan, and the Liberal government is ignoring the basic economic reality that its carbon tax unfairly punishes farmers and rural communities.

My province of Saskatchewan has developed its own climate change strategy, a made-in-Saskatchewan plan that tackles climate change without imposing the unfair carbon tax on Saskatchewan families. However, the Liberal government refused to accept it. The Liberals are forcing it on Saskatchewan against its will.

Well then, what does this carbon tax achieve? We cannot tax our way to a cleaner environment and the carbon tax will not lead to a major emission reduction in Canada.

We can look to British Columbia as an example. British Columbia was the first province to implement a carbon tax. It also has the highest carbon tax in the country. Despite this, carbon emissions have continued to rise there. The real impact of its carbon tax is that British Columbians are now paying more for gas than anyone else in the North American continent.

I will reiterate that point, because it is an important point that needs to sink in. The carbon tax in British Columbia is not reducing greenhouse gas emissions, but it is making life less affordable for British Columbians, yet the Liberals continue to strong-arm the province of Saskatchewan.

One would think that given their passion for a carbon tax, the Liberals would be forthcoming with information about its impact. It is fair for Canadians to want to know just how much the federal price on carbon will cost them, but again and again the Liberal government refuses to release those details.

Finance officials have said that the Liberal carbon tax will cost an extra 11¢ per litre of gas and $264 in extra costs for natural gas home heating annually. That alone is already a significant cost. However, there are additional costs and impacts of a $50 per tonne carbon tax.

Repeated requests for information have been issued from this side of the House. We have asked the government over and over again to provide details on the cost of its carbon tax and the results it expects to achieve. However, any response received has been blacked out. What does the Liberal government have to hide? What is it covering up? If the government cannot answer a basic question on what its carbon tax will cost and achieve, it is absurd for it to force it on the province of Saskatchewan.

The Liberals are not only raising taxes on individual Canadians, they are making it more expensive to do business in Canada. Businesses are also being hit with increased costs due to the carbon tax. This is in addition to the increased CPP and EI premiums, higher income taxes for entrepreneurs, and punitive changes to the small business tax rate. While we consider these higher costs, we cannot forget that the United States is lowering its corporate tax rate. Business investment in Canada has dropped since 2015. Meanwhile, business investment in the United States has increased.

The natural resource sector has been particularly hit hard. The energy sector and the jobs it creates are very important to my riding of Battlefords—Lloydminster. The fact that over $80 billion of investment in the energy sector has been lost in the last two years is very troubling for my constituents. They certainly are not comforted by the Prime Minister's repeated confession that he wants to phase out the oil sands.

The loss of business investment in Canada is a troubling trend, and the Liberals have offered nothing to Canadian businesses in this budget implementation act. The higher cost of doing business will hurt the bottom line for businesses. When it drives away business, results in job loss, and injects less money into our economy, everyone pays, and we all lose.

Bill C-74 offers Canadians a plan we cannot afford and does not move us ahead. Spending money we do not have on things we do not need is reckless and irresponsible. I would not run my personal household in that manner, and I would not teach my children to manage their finances in that way. Most of all, I cannot imagine that the members opposite would manage their personal finances that way and teach their children that as well. It begs the question: why is it that when the stakes are even higher, when the fiscal security of the country hangs in the balance, the Liberals would choose this route?

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, my colleague pointed out that the carbon tax will obviously be assigned to farmers as well. I have a farmer in my riding who estimates that the carbon tax alone will add $6,000 to his fuel bill. That is just for the fuel on his farm and does not take into account getting his milk to the processors, getting feed to the farm, and the extra cost of fertilizer. It is obvious that these extra costs, $6,000-plus or as high as $10,000, will simply be added to the bill for the average Canadian family for groceries and other consumable products.

Trevor Tombe, at the University of Calgary, estimates that the carbon tax will add up to $1,100 per family. We know that the Liberal government knows how much that is but refuses to tell us, because it is afraid that people will wake up to the fact that this is not a good thing for them.

I wonder if my colleague would comment on how this carbon tax to the farmers, which will be passed on to consumers, will help the middle class, which the government has continually said it is trying hard to help.

[Rosemarie Falk, Conservative, Battlefords—Lloydminster, SK]

Mr. Speaker, in Battlefords—Lloydminster, we have a rural farming community. We are spread over about 100,000 square kilometres. All the farmers I talk to acknowledge that they are going to have to pay the carbon tax on getting fertilizer delivered. They are going to have to pay the carbon tax on fuel to get groceries from the store, let alone the tax on the groceries already, because trucks have to drive them there. They are noticing that they are going to have to pay for their seed and their feed and everything. Every time they have to move, they are going to be paying more with the carbon tax. I spoke to one farmer who said that he is estimating that if this is enforced in Saskatchewan, he is going to be adding an extra $25,000 to his farming costs, on top of the expenses he has already put in, which is unfortunate. That is on top of the rail mess we had, where farmers were not able to sell and move their grain so they could put cash into their next expenses.