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

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Mr. Speaker, we hear so much from members across the way about the alleged progressivity of this budget in comparison to what has happened in the past. However, the Liberals forget that the government is imposing taxes that have a punitive effect on low-income Canadians, in particular the carbon tax. They will not release information about how that budget impacts Canadians based on income.

Contrast that to the previous government, which raised the base personal exemption, lowered the lowest marginal tax rate, lowered the GST, and introduced a taxable child benefit. All of our tax reductions on the income side were targeted at those who needed that relief most, those who were taken off the tax rolls completely, or those who were paying the lowest marginal rate. I think objectively that it is decidedly more progressive in terms of targeting benefits to lower-income Canadians than anything we have seen out of the government.

I would be curious if my friend and colleague can comment on that.

[Christine Moore, NDP, Abitibi—Témiscamingue, QC]

Mr. Speaker, the government could have proposed all kinds of measures to help people who are struggling to make ends meet. I introduced a private member's bill featuring a budget measure that had the support of some Conservative members. It sought to eliminate the GST on basic baby products. This is a simple measure that can really help parents who simply need to buy these products. All parents buy things like diapers. This measure would have been easy to include in the budget, but sadly, the Liberals did not. I know that this measure has the support of some Conservative members. It is a very simple measure that the Liberals could have implemented to help low-income Canadians. They did not. This shows that the Liberals have their own vision and are not thinking about the daily reality facing people who are struggling to meet their family's basic needs when shopping at the grocery store, for example.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

Resuming debate, the hon. member for Kitchener Centre. I would point out that the hon. member will only have nine minutes, and then we will bring the bill to a vote.

[Raj Saini, Liberal, Kitchener Centre, ON]

Mr. Speaker, before I begin, I would like to take a moment to offer my condolences to the victims of the van attack in Toronto. My thoughts and those of my constituents of Kitchener Centre are with the victims, their families, and the first responders on the scene.

Our government supports researchers, scientists, and organizations that drive fundamental research as we seek to foster the innovation which will create a better world for everyone to live in.

We believe in science. We believe in the power of ideas and the benefits of technological innovation and investment, and in supporting the work of the brightest minds as they come together to create a bright future for Canada.

That is why I am so proud to rise in the House today to talk about our 2018 budget. It is a budget that builds on our work to foster innovation while ensuring that economic growth and social progress benefit the lives of every Canadian.

Innovation is everywhere, and innovation is certainly at the heart of my own community of Kitchener-Waterloo. As we speak, Redtree Robotics is busy developing chipsets that enable users to connect sensors to robots, Miovision is finding solutions for advanced traffic signal operations, Thalmic Labs is on a mission to merge people and technology, and Clearpath Robotics is working to develop self-driving vehicles and to get drones to factory floors.

In order for us to remain at the forefront of global innovation breakthroughs and scientific discovery, we need to keep this momentum going. We need to be investing now to support our future thinkers, scientists, and innovators.

That is why I am so proud that budget 2018 proposes a historic investment in support of researchers, in big data and in the equipment Canadian researchers need in order to succeed and become world leaders in their field. This includes more than $1.7 billion over five years to support researchers, and $1.3 billion over five years that will be invested in labs, equipment, and the infrastructure they need.

As we invest in the next generation of innovators, Canada is also responding to the ongoing shift toward a knowledge-driven global economy. Brilliant minds will travel to wherever they can find a good home. We intend for Canada to be that home.

In budget 2018, our government proposes a new investment of $210 million over five years, with $50 million per year ongoing, to support the Canada Research Chairs. This program supports researchers and will help Canada attract and retain the best minds in the world, in the hope that we can benefit from their energy, their skills, and their potential. Their initiative will help Canada shine on the world stage.

Fostering innovation and investing in technology also fosters unprecedented opportunities to change social norms and foster equality.

Speaking at the SAP Next-Gen program last year, the UN Women deputy executive director highlighted that innovation, technology, and partnerships are prerequisites for the achievement of the sustainable development goals.

Social progress and innovation must go hand in hand. When small, medium-sized, and large companies, government, academic institutions, and not-for-profit organizations come together to generate bold ideas, all Canadians benefit from more well-paying jobs, groundbreaking research, and a world-leading innovation economy which fosters opportunities and improves quality of life.

Bold ideas will come out of collaborations like the ones proposed in budget 2018. In the budget, the government is proposing to provide $140 million over five years to enhance support of collaborative innovative projects involving businesses, colleges, and polytechnics.

Our government is working hard to make sure that every Canadian has the opportunity to be part of the success in an innovation-driven economy.

In part, this involves ensuring that Canadians are given opportunities to build new skills which will help them adapt to a changing economy.

Budget 2018 also contains measures that will protect workers in this new environment. In it, the government proposes legislative amendments to the Wage Earner Protection Program Act that seek to make the program fairer and to increase the maximum payment to seven weeks from four.

Our plan is working. Unemployment rates are at historic lows and we lead the G7 in economic growth. Of particular note is that over the past six months, there has been a 16% drop in El claimants from the manufacturing and utilities sector. We are making progress, but there is still much work left to do if we want to unlock Canada's true potential.

In Canada today, women earn 31% less than men. For every dollar of hourly wages a man working full-time earns in Canada, a woman in the same position earns 88 cents. Our government knows that, when women have more opportunities to earn a decent income, everyone benefits. To advance women's equality, budget 2018 will introduce a new proactive pay equity bill. To close the gender wage gap, the government will adopt measures in budget 2018 that enable women to access leadership positions and encourage them to choose non-traditional careers.

Women still only receive 38% of doctoral degrees, and in the STEM fields, that number drops to 20%. The participation rate for women in the economy is 10% lower than it is for men. The Canadian gender wage gap is larger than the OECD average. Just 25% of senior management positions are held by women. Not only are these numbers unacceptable, but this gap is potentially damaging to our economy. Clearly, we must do better.

We recognize there is a need to deliver positive systemic change. Innovation in every sector works best when diverse voices have the opportunity to be part of the conversation. It was with this in mind that in budget 2018 our government has committed to improving diversity in the research community through investments in the granting councils, data collection initiatives, early career researchers, new gender equality planning, and to investments in new El benefits through a use it or lose it incentive which encourages a second parent in two-parent families to share the work of raising their children more equally and allow greater flexibility for new moms who want to return to work sooner.

We have also committed to investments which will help women entrepreneurs grow their businesses through the new women entrepreneurship strategy, and to supporting the advancement of women in senior positions by publicly recognizing corporations committed to promoting women leaders.

We live in an era of social progress, economic prosperity, and technological change. I am proud to live in a time and place in which the celebration of diversity and the commitment to strive to equality are at the heart of policy-making, and in which we realize that our country's economic advancement and our work towards the elimination of barriers to equality must go hand in hand.

As we foster this innovation, as Canadians explore new ideas and build new paths to the future, I believe that the policies of budget 2018 will work to ensure that our country has the brainpower, the diversity of thought, and the potential to continue Canada's success tomorrow and well into the future.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

It being 6:45 p.m., pursuant to order made earlier today, it is my duty to interrupt the proceedings and put forthwith every question necessary to dispose of the second reading stage of the bill now before the House.

The question is on the amendment. Is it the pleasure of the House to adopt the amendment?

[Some hon. members]

Agreed.

No.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

All those in favour of the amendment will please say yea.

[Some hon. members]

Yea.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

All those opposed will please say nay.

[Some hon. members]

Nay.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

In my opinion the nays have it.

And five or more members having risen:

Call in the members.

(The House divided on the amendment, which was negatived on the following division:)

Vote #651

[The Speaker, Liberal, Geoff Regan]

I declare the amendment defeated.

The next question is on the main motion. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

No.

[The Speaker, Liberal, Geoff Regan]

All those in favour of the motion will please say yea.