Bill C-74 (Historical)

Budget Implementation Act, 2018, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures

Part 1 implements certain income tax measures proposed or referenced in the February 27,2018 budget by
(a) ensuring appropriate tax treatment of amounts received under the Veterans Well-being Act;
(b) exempting from income amounts received under the Memorial Grant for First Responders;
(c) lowering the small business tax rate and making consequential adjustments to the dividend gross-up factor and dividend tax credit;
(d) reducing the business limit for the small business deduction based on passive income and restricting access to dividend refunds on the payment of eligible dividends;
(e) preventing the avoidance of tax through income sprinkling arrangements;
(f) removing the risk score requirement and increasing the level of income that can be deducted for Canadian armed forces personnel and police officers serving on designated international missions;
(g) introducing the Canada Workers Benefit;
(h) expanding the medical expense tax credit to recognize expenses incurred in respect of an animal specially trained to perform tasks for a patient with a severe mental impairment;
(i) indexing the Canada Child Benefit as of July 2018;
(j) extending, for one year, the mineral exploration tax credit for flow-through share investors;
(k) extending, by five years, the ability of a qualifying family member to be the plan holder of an individual’s Registered Disability Savings Plan;
(l) allowing transfers of property from charities to municipalities to be considered as qualifying expenditures for the purposes of reducing revocation tax;
(m) ensuring that appropriate taxpayers are eligible for the Canada Child Benefit and that information related to the Canada Child Benefit can be shared with provinces and territories for certain purposes; and
(n) extending, by five years, eligibility for Class 43.‍2.
Part 2 implements certain excise measures proposed in the February 27,2018 budget by
(a) advancing the existing inflationary adjustments for excise duty rates on tobacco products to occur on an annual basis rather than every five years; and
(b) increasing excise duty rates on tobacco products to account for inflation since the last inflationary adjustment in 2014 and by an additional $1 per carton of 200 cigarettes, along with corresponding increases to the excise duty rates on other tobacco products.
Part 3 implements a new federal excise duty framework for cannabis products proposed in the February 27,2018 budget by
(a) requiring that cannabis cultivators and manufacturers obtain a cannabis licence from the Canada Revenue Agency;
(b) requiring that all cannabis products that are removed from the premises of a cannabis licensee to be entered into the Canadian market for retail sale be affixed with an excise stamp;
(c) imposing excise duties on cannabis products to be paid by cannabis licensees;
(d) providing for administration and enforcement rules related to the excise duty framework;
(e) providing the Governor in Council with authority to provide for an additional excise duty in respect of provinces and territories that enter into a coordinated cannabis taxation agreement with Canada; and
(f) making related amendments to other legislative texts, including ensuring that any sales of cannabis products that would otherwise be considered as basic groceries are subject to the GST/HST in the same way as sales of other types of cannabis products.
Part 4 amends the Pension Act to authorize the Minister of Veterans Affairs to waive, in certain cases, the requirement for an application for an award under that Act.
It also amends the Veterans Well-being Act to, among other things,
(a) replace the earnings loss benefit, career impact allowance, supplementary retirement benefit and retirement income security benefit with the income replacement benefit;
(b) replace the disability award with pain and suffering compensation; and
(c) create additional pain and suffering compensation.
Finally, it makes consequential amendments to other Acts.
Part 5 enacts the Greenhouse Gas Pollution Pricing Act and makes the Fuel Charge Regulations.
Part 1 of that Act sets out the regime for a charge on fossil fuels. The fuel charge regime provides that a charge applies, at rates set out in Schedule 2 to that Act, to fuels that are produced, delivered or used in a listed province, brought into a listed province from another place in Canada, or imported into Canada at a location in a listed province. The fuel charge regime also provides relief from the fuel charge, through rebate and exemption certificate mechanisms, in certain circumstances. The fuel charge regime also sets out the registration requirements for persons that carry out certain activities relating to fuels subject to the charge. Part 1 of that Act also contains administrative provisions and enforcement provisions, including penalties, offences and collection provisions. Part 1 of that Act also sets out a mechanism for distributing revenues from the fuel charge. Part 1 of that Act also provides the Governor in Council with authority to make regulations for purposes of that Part, including the authority to determine which province, territory or area is a listed province for purpose of that Part.
Part 2 of that Act sets out the regime for pricing industrial greenhouse gas emissions. The industrial emissions pricing regime requires the registration of any facility that is located in a province or area that is set out in Part 2 of Schedule 1 to that Act and that either meets criteria specified by regulation or voluntarily joins the regime. The industrial emissions pricing regime requires compliance reporting with respect to any facility that is covered by the regime and the provision of compensation for any amount of a greenhouse gas that the facility emits above the applicable emissions limit during a compliance period. Part 2 of that Act also sets out an information gathering regime, administrative powers, duties and functions, enforcement tools, offences and related penalties, and a mechanism for distributing revenues from the industrial emissions pricing regime. Part 2 of that Act also provides the Governor in Council with the authority to make regulations for the purposes of that Part and the authority to make orders that amend Part 2 of Schedule 1 by adding, deleting or amending the name of a province or the description of an area.
Part 3 of that Act authorizes the Governor in Council to make regulations that provide for the application of provincial laws concerning greenhouse gas emissions to works, undertakings, lands and waters under federal jurisdiction.
Part 4 of that Act requires the Minister of the Environment to prepare an annual report on the administration of the Act and to cause it to be tabled in each House of Parliament.
Part 6 amends several Acts in order to implement various measures.
Division 1 of Part 6 amends the Financial Administration Act to establish the office of the Chief Information Officer of Canada and to provide that the President of the Treasury Board is responsible for the coordination of that Officer’s activities with those of the other deputy heads of the Treasury Board Secretariat. It also amends the Act to ensure Crown corporations with no borrowing authority are able to continue to enter into leases and to specify that leases are not considered to be transactions to borrow money for the purposes of Crown corporations’ statutory borrowing limits.
Division 2 of Part 6 amends the Canada Deposit Insurance Corporation Act in order to modernize and enhance the Canadian deposit insurance framework to ensure it continues to meet its objectives, including financial stability.
Division 3 of Part 6 amends the Federal-Provincial Fiscal Arrangements Act to renew Fiscal Equalization Payments to the provinces and Territorial Formula Financing Payments to the territories for a five-year period beginning on April 1,2019 and ending on March 31,2024, and to authorize annual transition payments of $1,270,000 to Yukon and $1,744,000 to the Northwest Territories for that period. It also amends the Act to allow Canada Health Transfer deductions to be reimbursed when provinces and territories have taken the steps necessary to eliminate extra-billing and user fees in the delivery of public health care.
Division 4 of Part 6 amends the Bank of Canada Act to ensure that the Bank of Canada may continue to buy and sell securities issued or guaranteed by the government of the United Kingdom if that country ceases to be a member state of the European Union.
Division 5 of Part 6 amends the Currency Act to expand the objectives of the Exchange Fund Account to include providing a source of liquidity for the government of Canada. It also amends that Act to authorize the payment of funds from the Exchange Fund Account into the Consolidated Revenue Fund.
Division 6 of Part 6 amends the Bank of Canada Act to require the Bank of Canada to make adequate arrangements for the removal from circulation in Canada of its bank notes that are worn or mutilated or that are the subject of an order made under paragraph 9(1)‍(b) of the Currency Act. It also amends the Currency Act to provide, among other things, that
(a) bank notes are current if they are issued under the authority of the Bank of Canada Act;
(b) the Governor in Council may, by order, call in certain bank notes; and
(c) bank notes that are called in by order are not current.
Division 7 of Part 6 amends the Payment Clearing and Settlement Act in order to implement a framework for resolution of clearing and settlement systems and clearing houses, and to protect information related to oversight, by the Bank of Canada, of clearing and settlement systems.
Division 8 of Part 6 amends the Canadian International Trade Tribunal Act to, among other things,
(a) create the position of Vice-chairperson of the Canadian International Trade Tribunal;
(b) provide that former permanent members of the Tribunal may be re-appointed to one further term as a permanent member; and
(c) clarify the rules concerning the interim replacement of the Chairperson of the Tribunal and provide for the interim replacement of the Vice-chairperson of the Tribunal.
Division 9 of Part 6 amends the Canadian High Arctic Research Station Act to, among other things, provide that the Canadian High Arctic Research Station is to be considered an agent corporation for the purpose of the transfer of the administration of federal real property and federal immovables under the Federal Real Property and Federal Immovables Act. It also provides that the Order entitled Game Declared in Danger of Becoming Extinct is deemed to have continued in force and to have continued to apply in Nunavut, as of April 1,2014.
Division 10 of Part 6 amends the Canadian Institutes of Health Research Act in order to separate the roles of President of the Canadian Institutes of Health Research and Chairperson of the Governing Council, to merge the responsibility to establish policies and to limit delegation of certain Governing Council powers, duties and functions to its members or committees or to the President.
Division 11 of Part 6 amends the Red Tape Reduction Act to permit an administrative burden imposed by regulations to be offset by the reduction of another administrative burden imposed by another jurisdiction if the reduction is the result of regulatory cooperation agreements.
Division 12 of Part 6 provides for the transfer of certain employees and disclosure of information to the Communications Security Establishment to improve cyber security.
Division 13 of Part 6 amends the Department of Employment and Social Development Act to provide the Minister of Employment and Social Development with legislative authority respecting service delivery to the public and to make related amendments to Parts 4 and 6 of that Act.
Division 14 of Part 6 amends the Employment Insurance Act to modify the treatment of earnings received by claimants while they are in receipt of benefits.
Division 15 of Part 6 amends the Judges Act to authorize the salaries for the following new judges, namely, six judges for the Ontario Superior Court of Justice, one judge for the Saskatchewan Court of Appeal, 39 judges for the unified family courts (as of April 1,2019), one judge for the Federal Court and a new Associate Chief Justice for the Federal Court. This division also makes consequential amendments to the Federal Courts Act.
Division 16 of Part 6 amends certain Acts governing federal financial institutions and related Acts to, among other things,
(a) extend the scope of activities related to financial services in which federal financial institutions may engage, including activities related to financial technology, as well as modernize certain provisions applicable to information processing and information technology activities;
(b) permit life companies, fraternal benefit societies and insurance holding companies to make long-term investments in permitted infrastructure entities to obtain predictable returns under the Insurance Companies Act;
(c) provide prudentially regulated deposit-taking institutions, such as credit unions, with the ability to use generic bank terms under the Bank Act, subject to disclosure requirements, as well as provide the Superintendent of Financial Institutions with additional enforcement tools under the Bank Act and the Office of the Superintendent of Financial Institutions Act, and clarify existing provisions of the Bank Act; and
(d) modify sunset provisions in certain Acts governing federal financial institutions to extend by five years, after the day on which this Act receives royal assent, the period during which those institutions may carry on business.
Division 17 of Part 6 amends the Western Economic Diversification Act to remove the requirement of the Governor in Council’s approval for the Minister of Western Economic Diversification to enter into an agreement with the government of a province, or with a provincial agency, respecting the exercise of the Minister’s powers and the carrying out of the Minister’s duties and functions.
Division 18 of Part 6 amends the Parliament of Canada Act to give each House of Parliament the power to make regulations related to maternity and parental arrangements for its own members.
Division 19 of Part 6 amends the Canada Pension Plan to, among other things,
(a) eliminate age-based restrictions on the survivor’s pension;
(b) fix the amount of the death benefit at $2,500;
(c) provide a benefit to disabled retirement pension beneficiaries under the age of 65;
(d) protect retirement and survivor’s pension amounts under the additional Canada Pension Plan for individuals who are disabled;
(e) protect benefit amounts under the additional Canada Pension Plan for parents with lower earnings during child-rearing years;
(f) maintain portability between the Canada Pension Plan and the Act respecting the Québec Pension Plan; and
(g) authorize the making of regulations to support the sustainability of the additional Canada Pension Plan.
Division 20 of Part 6 amends the Criminal Code to establish a remediation agreement regime. Under this regime, the prosecutor may negotiate a remediation agreement with an organization that is alleged to have committed an offence of an economic character referred to in the schedule to Part XXII.‍1 of that Act and the proceedings related to that offence are stayed if the organization complies with the terms of the agreement.

Budget Implementation Act, 2018, No. 1

[Raj Grewal, Liberal, Brampton East, ON]

Madam Speaker, what the hon. member and the hon. member's party fail to understand is that our commitment made in the 2015 election to return to the age of 65 for the GIS and old age security has lifted hundreds of thousands of seniors out of poverty. Those are the same seniors the member's party turned its back on. That was the commitment we made in the 2015 campaign.

The member opposite wants to talk about jobs. Let us talk about jobs, no problem. Since we were elected in 2015, we have created over 600,000 jobs. That is more than the Conservatives created in 10 years of government. The unemployment rate is at a decade low of 5.8%. The Conservatives had the lowest-growth job rate, for 10 years, of any prime minister.

The member opposite and his party like to get up and talk about experts. We take our advice from the Canadian people. That is why we are sitting on this side of the House. If the Conservatives keep that mentality, they will be comfortable on that side for a very long time.

[Cheryl Hardcastle, NDP, Windsor—Tecumseh, ON]

Madam Speaker, it is always interesting to hear people in this place fill themselves up with their own rhetoric and the arrogance that comes with it. It is very disconcerting. The more I hear the heckling in this House, the more it shows me how out of touch these people are with real Canadians.

In particular, in the 500-some pages there is nothing that addresses our seniors' conditions today, here and now. When the Liberals talk about advisory committees or money that is going to be allocated at some future date, they are actually insulting people who cannot articulate in a very candid fashion the way they are struggling, because it is embarrassing. We have had two different governing parties for 150 years that have provided the narrative, “Shame on you. If you are struggling, you made bad choices.”

I want to know exactly what you are doing in this budget, right now, to address struggling seniors who cannot afford their pharmacare and who cannot afford—

[The Assistant Deputy Speaker, NDP, Carol Hughes]

I just want to remind the member to address the questions to the Chair and not to the government side.

[Raj Grewal, Liberal, Brampton East, ON]

Madam Speaker, I always find it absolutely amazing when members from the NDP get up and talk about helping the most vulnerable people in our society.

When the opportunity came to help middle-class families with a tax cut, and when the opportunity came, through the Canada child benefit, to lift 300,000 children out of poverty, the NDP members voted against it. They always go out and talk about helping Canadians, but when the opportunity came, they voted against it. We are not going to take any lessons from the NDP members on helping Canadians.

This side of the House is doing its job. In the 2015 election, we promised that we would invest in middle-class Canadians, and we have done that by reducing taxes and investing in the Canada child benefit. We promised to reduce the age from 67 to 65, and we have done that. We have invested billions of dollars in affordable housing.

The House resumed consideration of the motion that Bill C-74, An Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, be read the second time and referred to a committee, and of the amendment.

[Marwan Tabbara, Liberal, Kitchener South—Hespeler, ON]

Mr. Speaker, a couple of weeks ago, I happened to catch Stephen Poloz's speech on budget 2018. Hearing the governor of the Bank of Canada's remarks on our federal budget filled me with pride. Hearing his optimism about the present macroeconomic situation, including the creation of over 280,000 jobs in the past 12 months and the lowest unemployment in 40 years, made me proud to be a part of this government that believes in evidence-based policy and uses it to make informed and sound financial decisions for this country.

The notable takeaway from Bank of Canada Governor Poloz highlighted the groups of people in Canada who represent sources of untapped potential. These include youth, women, indigenous people, and the growing number of recent migrants. Let us focus on youth for a minute.

The governor cites young people as one of the sources of untapped potential, and I wholeheartedly agree. There is a decline in youth participation in the economy, and for Canada to truly prosper, more young Canadians will have to have jobs and pathways to these jobs must be created. This where budget 2018 comes in.

In budget 2018, the new Canada workers benefit would encourage more people and more youth to join the workforce. Our plan will offer real help to more than two million Canadians who are working hard to join the middle class. Our plans anticipate raising roughly 70,000 Canadians out of poverty. At the same time, starting in 2019, the government will also make it easier for people to access the benefit they have earned, making changes that will allow the Canada Revenue Agency to calculate the CWB for any tax filer who has not claimed it yet.

The Canada workers benefit replaces the working income tax benefit. This means that low-income workers earning $15,000 would receive up to almost $500 more from the CWB in 2019 than in 2018 to invest and spend on things that are important to them, such as groceries, utilities, and other essentials.

Our government ensures the smooth running of any new measure we introduce. As such, over the next year the government will work to determine if the delivery of the CWB can be further improved to provide better support to low-income Canadians throughout the year, rather than through an annual refund after filing their taxes.

It is no secret that budget 2018 has been referred to as a ''gender budget", and I am proud to say that every single decision on expenditures and tax measures in this budget was informed by a gender-based analysis. A gender-based analysis such as this is important to target particular groups and produce evidence-based policy, and to help end the income gap between women and men doing equal work.

The most notable example of this in budget 2018 is the promise to fund a dedicated second parent leave under employment insurance that will see $240 million in funding a year rising to $345 million. This includes giving couples who share parental leave an additional five weeks of paid benefits, starting in June 2019. These measures seek to increase the number of men who take time off after the arrival of a new child. The new parental sharing benefit will allow two-parent families, including same-sex parents and people who adopt, to share the opportunity to take an additional five to eight weeks away from work to spend with their children.

Despite these efforts, much work needs to be done to make child care accessible to parents. Lack of child care is what keeps women out of the workforce, as research has shown. In order to encourage and facilitate more women's participation in the labour force, we must lower the cost of child care. Our government is committed to making affordable early learning and child care more accessible.

In budget 2017, the government announced a long-term investment of $7.5 billion over 11 years to support more accessible and affordable early learning. Following this, the federal, provincial, and territorial governments reached an agreement on a multilateral early learning and child care framework. The government is now entering into a three-year bilateral agreement with provinces and territories in order to review and adjust these agreements as needed over the 11-year framework. So far, we have reached nine agreements.

While I am on the topic of women's participation in the workforce, it is important to mention the important contributions of women entrepreneurs. Budget 2018 recognizes this in its strategy for women entrepreneurs, with $1.65 billion in new financing being made available to women business owners, which will be delivered over three years through the Business Development Bank of Canada and Export Development Canada.

I want to talk about the Fierce Founders in Communitech in my riding. They are the first female-focused accelerator group created to encourage gender diversity in tech and encourage women entrepreneurs to start tech companies. Communitech helps with financing with this program, and it has done tremendously in our region to help female entrepreneurs get into the start-up sector and pursue high-tech jobs.

Budget 2018 proposes an additional $511 million over five years on a cash basis, starting in 2018-19, to the regional development agencies to support the innovation and skills plan across all regions of Canada. Of the $511 million, $149 million would be allocated to the Federal Economic Development Agency for Southern Ontario, of which $33 million will be for nationally coordinated, regionally tailored support for women entrepreneurs.

In addition, our government recognizes the barriers that make it difficult for women to launch their own businesses. Therefore, we are committed to providing $105 million over five years to reduce such barriers. Our government also has a commitment to make grants and programs for scientific research more accessible to women.

As a member of Parliament in the tri-cities, I want to talk about innovation and infrastructure, which is welcomed our region, especially in light of the federal government's $950-million innovation superclusters. I am proud to say that the University of Waterloo in my region will take a leading research role in two of the five winning bids as part of the innovation supercluster initiative. The government announced the advanced manufacturing supercluster, an innovation hotbed that is home to strong industrial clusters linked through their shared reliance on specialized inputs, including technologies, talent, and infrastructure. This supercluster will connect Canada's technology strengths to our manufacturing industry to make us a world manufacturing leader in the economy of tomorrow.

The Federal Economic Development Agency for Southern Ontario currently supports economic growth in southern Ontario through the delivery of federal programs and services. The agency's funding will be renewed to continue supporting that growth with a commitment of $920 million over six years.

Specifically in my region, as I mentioned, there is $950 million, and part of that is part of the superclusters where we are encouraging more innovation and industry to develop high technology to work to advance manufacturing and high-tech jobs so that we can grow our economy.

I would like to conclude by echoing the sentiments of Bank of Canada Governor Poloz:

We are living in an incredibly optimistic economic time in Canada. Our labour market needs to work, but things are looking up as we pave the way for women, youth, and other groups to participate in our labour force. New opportunities and technologies are on the horizon, and budget 2018 is laying the groundwork for their success.

I am proud that we brought this budget forward. I am proud that I represent the riding of Kitchener South—Hespeler, where we are embracing this budget with technology, innovation, and investment so that we can grow our economy and ensure that everyone in my region and in the rest of Canada prosper.

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

Mr. Speaker, I want to thank my colleague for his comments. As geographic neighbours in our ridings, we have the privilege of representing the greatest part of Canada in the Waterloo region, so we certainly have a lot in common.

In the early part of his comments, my colleague focused on youth. He said he wanted to tap the untapped potential and he wanted more youth to join the workforce. However, there are not going to be more workplaces to go to if the government keeps on with its financial policies, which are driving investment out of the country. Companies are leaving fast and furious. That is one concern. The other concern is about the massive debt that the government is leaving these very youth who are trying to find jobs today.

Finally, my question is on the Canada summer jobs program. We have thousands of youth this summer who will not be working because of the discriminatory policies that the government requires of those who are providing those jobs. I wonder if my colleague could comment on how that actually helps the youth he is concerned about.

I applaud his concern for youth. We need to be concerned about the youth of our country, but I would like answers to those questions.

[Marwan Tabbara, Liberal, Kitchener South—Hespeler, ON]

Mr. Speaker, the member asked great questions.

I want to lay out what our government has achieved since we have taken office. Some 600,000 jobs have been created since we have taken office. Canada is doing the best of all the G7 countries. Our government has lifted over 300,000 children out of poverty.

The member mentioned youth. Our youth are facing challenges at this time. I think my colleague can relate to the fact that housing prices in our region have gone up quite significantly. A lot of young people are unable to purchase their first home. I agree with the hon. member that we have a lot of work to do for our youth.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, I listened with interest when my colleague talked about regional economic development. My own riding is bigger than the United Kingdom. Northern Ontario is on the other side of the map, and most people in southern Ontario in political life do not even know we exist.

When the Liberals talk about superclusters, it shows the Liberals' lack of vision. They throw supercluster here, supercluster there, as though we get three or four great winners and we are going to build a national economy. I am so pleased they are making that investment in Waterloo. However, our region is a vast region of resource-based, agricultural-based small communities, and the only supercluster we see in regional economic development is the supercluster that is forming in the office of the minister from Mississauga as he shuts down the regional voices and conglomerates them all under his watch.

We look at the Liberals' vision for FedNor, which they have atrophied year after year, and the loss of staff at FedNor. The fact is that the Liberals do not even mention FedNor any more when they do consultations. For example, on broadband, the Liberals cancelled the FedNor broadband projects, and we lost two years.

I would invite my colleague to get outside of the Liberal supercluster and come to rural and resource-based Canada. We are wonderful people. We will not bite. We will show him around. We will invite him to understand what a national economy looks like.

[Marwan Tabbara, Liberal, Kitchener South—Hespeler, ON]

Mr. Speaker, we have invested historic numbers in infrastructure. With this investment we have been able to get Internet and broadband access to many rural communities. That did not happen under the previous government.

In terms of the superclusters, $950 million has been given to superclusters. This is not only good for Waterloo region, but it is good for areas that have manufacturing sectors that now are transitioning to advanced manufacturing sectors, which are growing our economy and increasing jobs. That is our record. Six hundred thousand jobs have been created under our government.

[Larry Maguire, Conservative, Brandon—Souris, MB]

The Liberal omnibus budget implementation bill is quite the tome, coming in at 556 pages. One can only begin to imagine the multitude of changes it would impose on Canadians. For a party that decried omnibus bills, it really did not take long for the Liberals to break another one of their campaign promises.

To put the length of this legislation into perspective, The Adventures of Huckleberry Finn, To Kill a Mockingbird, The Catcher in the Rye, and The Handmaid's Tale were all written with fewer pages. While one can only begin to wonder what genre the Liberal budget implementation bill would fall under, I can assure Canadians that its negative implications for the pocketbooks of hard-working families all across the country and its impact on our economy would be very real.

Throughout the proposed legislation, there are numerous measures that would hike taxes and impose new taxes, and it still does not provide any meaningful plan to get spending under control. Only the Liberals could do a spending review and find no savings. I would even argue that it probably cost the taxpayers more money for the government to set up its internal spending review than what it would end up saving.

Now, after three years of the Liberals in power, Canadians have a deep understanding of the consequences of the Liberal decisions. Outside private investment has plummeted. Taxes are higher. There are deficits as far as the eye can see, and the Liberals still do not have a comprehensive plan to justify their spendthrift ways.

At a macro level, spending has grown at a furious pace. The Liberals have increased spending at a rate of roughly 6.5% to 7% per year. That means they have increased spending by 20% in the last three years.

While some of the new spending measures are welcome, we have to question where all the money is going. According to the PBO, the Liberals' infrastructure spending has contributed only 0.1% of GDP growth. We also know that a quarter of their infrastructure funding has lapsed and is not getting out the door. Worst of all, the PBO said that the Liberals do not even have a plan when it comes to infrastructure investments. How they plan on spending billions of dollars with no plan boggles the mind. Perhaps that is indicative of many other underlying problems that the government has created for itself these past few months.

The issue of everlasting deficits really does not bother my hon. Liberal colleagues across the way, and I have yet to hear a single Liberal MP openly question the finance minister as to why he failed to keep the Liberals' promise to return to balanced budgets by 2019. As noted, the deficit has gone from an election promise of $6 billion for this year to the government's broken promise of $18 billion, to be levelled at $22 billion today, according to the PBO. As interest rates rise, and they have for the last three budgetary quarters, this out-of-control spending becomes even more irresponsible.

The real question, though, is about future governments, in this case future Conservative governments, which will have to deal with the fiscal mess that is being passed down to all Canadians, and particularly to our young Canadians. Let us never forget that today's deficits are tomorrow's taxes. Money does not grow on trees. It does not magically appear out of thin air. Budgets, contrary to what the Prime Minister says, do not balance themselves.

As I have said before, the Liberals have provided zero rationale for why they need to rack up the credit—

[Some hon. members]

Oh, oh!

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

I just want to remind the hon. members that there is nothing stopping them from crossing the floor to speak to each other, rather than shout across. It just makes it a lot easier for me to hear what the hon. member for Brandon—Souris is saying, which is very interesting.

The hon. member for Brandon—Souris, please continue.

[Larry Maguire, Conservative, Brandon—Souris, MB]

Mr. Speaker, it is just another opportunity for them not to hear what they do not want to hear.

There is no economic calamity. There is no recession. We are not in one. There is no economic calamity transpiring across the border, as was the case during the great world recession of 2008-09. The only logical conclusion is that the Liberals have lost complete and utter control of the nation's finances.

Not once has the Minister of Finance provided any concrete answers as to when he plans to stop spending more than the Liberals are bringing in. Not once has the Minister of Finance actually provided a coherent answer as to why they broke their election campaign promises of a balanced budget in 2019, which just happens to be the next election year. Now, the Minister of Finance is asking parliamentarians to give him approval to continue his out-of-control spending. It sounds like the losing Wynne budget plan of Ontario, but then, it is from the same architect, after all.

For example, tucked away in the legislation is a giant $7-billion slush fund. What is it for? We do not get an answer. The Liberals say they have no idea. I believe it is safe to say that this would be the largest blank cheque in Canadian history. It would be highly irresponsible to approve their plan and give them the authorization to spend $7 billion of taxpayers' money without any explanation.

Due to the length of their omnibus legislation, I want to use the remaining time to focus squarely on their carbon tax, which takes up about 200 pages of the bill. Never before has a government introduced such sweeping tax changes without providing any meaningful information. Actually, I take that back. We only have to look at how they tabled their plan to tax local businesses the day before the House rose for Christmas. There should be no taxation without information.

Multiple requests for information filed with the government have resulted in the release of documents that have key information blacked out. The “potential impact of a carbon price on households' consumption expenditures across the income distribution” was withheld. If the Liberals want to take hundreds, if not thousands, of dollars out of the pockets of my constituents, they had better be upfront about what their carbon tax would do. Particularly for a constituency as rural and diverse as mine, families have to drive long distances to go to work, drop off their kids at school, run errands, and pick up groceries. There is no public transit picking up passengers in Elgin, Manitoba.

I would suggest that many of my rural colleagues are in the same boat. We have thousands of constituents who are going to be negatively impacted by the Liberal carbon tax, and yet the Minister of Environment is refusing to answer the most obvious question: How many tonnes of C02 are projected to be eliminated by this carbon tax?

It is not for a lack of trying from our side to get the information. The Minister of Environment has been asked dozens of times how much Canada's emissions would be reduced by implementing a $50 carbon tax. Each and every time she has been asked, she has refused to answer. She has evaded the question. She has failed to present even the most basic information on what the impact of the carbon tax would be, and then has the audacity to say that she has “no time” for elected representatives who do not support the carbon tax. This sort of tone is what some call the Liberals' kryptonite. It is demeaning, condescending, and patronizing. I would call that the Liberal hat trick.

It is unacceptable that the Liberals refuse to outline the true cost of their carbon tax and the impact it would have on Canadian families. It is unclear what impact the Liberals' national climate change plan would have on the economy, and that uncertainty is causing businesses to stand on the sidelines and wait, discouraging investment and hurting the economy.

The only information we are getting is from the PBO, who released a report this morning projecting that the carbon tax would take $10 billion out of our economy by 2022. The report warns that the carbon tax would “generate a headwind” for the Canadian economy as it is escalated from $10 per tonne in 2018 to $50 per tonne in 2022.

Another story came out this morning by Blacklock's, which stated that according to information provided to the Senate energy committee, the Liberal carbon tax “would have to more than double [the $50-per-tonne tax] if Canada is to meet greenhouse gas emission targets”.

That would mean a target of at least $130 a tonne, the equivalent of an extra 22 cents per litre on gasoline. If we thought gas was getting expensive again with the rise of the price of oil, we just have to wait until the Liberals spring that extra 22 cents on gasoline. The trickle-down effect will be disastrous for household incomes. It will cost more to heat our homes, purchase our groceries, and purchase almost everything at the store.

While the Liberals want to sneak their carbon tax through the House inside their omnibus budget bill, I want to remind them that threatening provinces will get them nowhere. Imposing this massive tax grab on Canadians without even providing the most meagre information is the complete opposite approach they should be taking.

I will never support this Liberal carbon tax. I cannot in good conscience support their out-of-control spending, and I will oppose the tax hikes contained in their budget implementation bill every step of the way.

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

Mr. Speaker, I heard my hon. colleague across the aisle say that we do not want to hear what we do not want to hear, and he talked about actions being demeaning and condescending.

In 2014, I know what it was like living in New Brunswick Southwest. I know what it was like in the field of education, as a post-secondary educator, with the cuts to science. When I decided to run, it was on the premise that we were going to restore science and the confidence the public would have in our policies and our decisions.

I am wondering if my hon. colleague could respond to why the Harper government made significant cuts to science, not to buildings but to the science itself, that inevitably discouraged young people from jumping into scientific fields.