Budget Implementation Act, 2018, No. 1

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

This bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.

Sponsor

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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

Elsewhere

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

Votes

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

April 30th, 2018 / 3:50 p.m.
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Bruce Ball Vice-President, Taxation, Chartered Professional Accountants of Canada

Thank you, Mr. Chair, and members of the committee. As mentioned, my name is Bruce Ball. I'm vice-president of tax for the Chartered Professional Accountants of Canada, known as CPA Canada.

CPA Canada is one of the largest national accounting organizations in the world, representing more than 210,000 members. Created through unification of the three legacy designations, CPA Canada is celebrating five years of serving the profession, advocating in the public interest, and supporting the setting of accounting, auditing and assurance standards.

I'll focus my comments today on the amendments to the Income Tax Act in part 1 of Bill C-74. In particular, I wanted to address three important points, the first being the outstanding issues that remain with the private company tax measures; the impact of the recent U.S. tax changes on Canada's competitiveness; and the need to review Canada's tax system to address these matters and other matters related to competitiveness, simplicity, fairness, and efficiency.

Starting with the private company measures, as you're well aware, the finance minister's initial proposals to change the tax provisions for Canadian-controlled private corporations were met with considerable criticism. The minister and his department have listened and acted. The provisions laid out in budget 2018 and the bill are much improved. However, there are still aspects in need of further improvement. In particular, the new legislation around the tax on split income is still complex, difficult to read and interpret, and challenging for business owners and practitioners to apply.

A general exemption for spouses would go a long way to simplifying the measures, and is highly recommended. The joint committee on taxation of the Canadian Bar Association and CPA Canada also made some suggestions to further clarify the rules, which we think should be considered. The joint committee's suggestions are rather technical, so I won't go into the details here, but if there are particular questions, I'd be happy to address them.

Though not yet legislated, the changes to the tax on split income are set to take effect on January 1, 2018. We're still suggesting that the government consider deferring the changes to January 2019 to allow more time for consultation and further refinements, because we still think the rules can be improved.

On competitiveness and the matter of the U.S. tax reforms, no matter what we think about them, they are a game-changer for Canada. Budget 2018 announced that Finance Canada would conduct a detailed analysis of the U.S. federal tax reforms. This is good news, but this process must have a sense of urgency to it. Canada's competitiveness depends on it.

In the most recent CPA “Canada Business Monitor” survey, two-thirds of Canadian business leaders report that Canada is now a less competitive place to invest and do business versus the United States, compared to one year ago. The minister says he does not believe that the corporate tax rate is the problem, and we agree. The issue is competitiveness, and competitiveness can be affected by a number of different factors. The tax system as a whole, not just tax rates, is a fundamental part of creating a competitive business environment.

This brings me to my third point, a comprehensive tax review. To ensure that Canada has the most competitive, fair, simple, and efficient tax system possible, it's time for a review of the tax system. You've heard me make this argument before, but each time I appear before this committee the rationale becomes stronger and more urgent. Tax reform will involve broad consultation, and it will involve looking at the tax system more holistically, not just from the perspective of business competitiveness. The process will be worth it. It will lead to a better, more long-term approach to fixing Canada's tax problems.

While the U.S. tax changes demonstrate the need to address Canada's tax system, the controversy around the proposed CCPC tax changes also illustrates why a holistic approach is preferable to incremental changes. The Advisory Council on Economic Growth also recommended addressing the competitiveness challenges in Canada's tax system.

It we want a tax system that fosters our long-term competitiveness, that supports inclusive growth, and that benefits all Canadians, then a review of the entire tax system is the first crucial step.

Thank you very much for the opportunity to appear before the committee, and I'll be happy to answer questions.

April 30th, 2018 / 3:30 p.m.
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President, Canadian Labour Congress

Hassan Yussuff

Thank you, sir.

Chair and honourable members, good afternoon.

First, on behalf of the three million members of the Canadian Labour Congress, I want to thank the committee for the opportunity to present our views on Bill C-74.

We want to commend the government for two recent improvements to the working income tax benefit, WITB, now renamed the Canada workers benefit, CWB. The first of these improvements expanded WITB as part of the Canada pension plan enhancement. The second improvement is proposed in Bill C-74. In total, there will be nearly $1 billion of annual investment coming into effect in 2019 that will increase the maximum benefit and expand the number of workers who will receive these benefits. The government estimated that these enhancements will lift about 70,000 people out of poverty, and will encourage a greater labour market participation.

We're also pleased that the Canada Revenue Agency will automatically enrol low-income tax filers who are eligible for the benefit. This will improve access for low-paid workers. The government estimates that an additional 300,000 low-income workers will receive the CWB in the 2019 tax year.

We also have several recommendations to further improve the benefits.

First, receiving EI benefits should not cause the CWB to be reduced. Currently, the CWB is gradually phased out based on net income instead of on earnings. This means that EI beneficiaries can be eligible for the Canada workers benefit. Workers have earned these benefits by paying EI premiums, and their EI benefits should not reduce their CWB.

Second, low-income workers should be able to get the CWB more frequently through the year. Low-paid workers need the CWB in periods of low or no earnings. However, only half of the anticipated benefit can be paid in advance. In our view, the CWB should be changed so that 100% of the expected benefit can be paid quarterly, instead of having to wait for tax time. This would be similar to other transfers like the GST tax credit.

Third, it is important to keep in mind that this is still a very modest benefit. In 2015, 1.2 million working-age Canadians received the WITB, with an average annual benefit of only $807 per household. Many recipients of the benefit will continue to fall below the poverty line. More money should, therefore, be allocated to the Canada workers benefit to provide higher benefits and to phase it out more slowly. We believe that no worker in Canada should live in poverty. In particular—shamefully—full-time, full-year workers earning minimum wage in Canada could be earning at or near the poverty line. This leads to my final point.

The CWB alone is simply not enough. It must be part of a broader tool kit to eliminate working poverty in Canada.

As the 2018 budget noted, over the past four years, lower and middle-income workers have had their wage prospects stall while the CWB remains essential. Therefore, we must strike new wage and workplace standards and combat precarious work. This should take a three-prong approach.

First, we need to strengthen the labour standards of the Canada Labour Code, which we hope we will do this year. This will include the creation of a new federal minimum wage. A $15 federal minimum wage is long overdue. The federal government also should enact measures to ensure equal pay protection for part-time, temporary, and contract workers within the federal jurisdiction.

Second, there is still a gap between the number of Canadians who want to join a union and the number of Canadians who are actually represented by a union. The best and the most effective way to raise wages and fight precarity is by giving these workers a voice in the workplace. This means strengthening the labour laws to enable workers to join a union.

The third prong is simple. Attack the joblessness and unemployment by creating decent jobs. The CLC urges the government to invest in the bold economic transition to a low-carbon economy. We have an historic opportunity to respond to the climate crisis and generate decent jobs—green jobs—through the ambitious program of energy investment, public transit, and home and building retrofits. There are many job options here waiting to be tapped. If we reduce the labour market slack and address underemployment, wages will begin to rise.

Finally, I want to say something about the improvement to the Canada pension plan in part 6 of this bill. The CLC welcomes these enhancements to the survivors pension and other benefits. With respect to the child rearing and disability dropout, we believe the government hasn't properly researched the impact on women and workers with a disability. We therefore recommend the committee ask the Department of Finance to provide detailed modelling of the drop-in provision that's in the bill in regard to the CPP enhancement, for the committee members.

I want to thank the committee members for the opportunity to be here today. I will answer on behalf of the congress any questions the committee wishes to pose.

Thank you so much.

April 30th, 2018 / 3:30 p.m.
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Liberal

The Chair Liberal Wayne Easter

We will call the meeting to order to hear from witnesses on the budget implementation act, Bill C-74.

In this round between 3:30 and 5:00, we have four witnesses here, and one from Vancouver by video.

We'll start with Mr. Robert Blakely from Canada's Building Trade Unions.

The floor is yours.

April 25th, 2018 / 4:05 p.m.
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Liberal

The Chair Liberal Wayne Easter

I call the meeting to order. I understand that we'll be interrupted by bells. We're here continuing our study on the budget implementation act, Bill C-74.

With us to give their comments on part 3 of the act, amendments to the Excise Act, cannabis taxation, is Mr. Coulombe, who is Director, Sales Tax Division; Mr. Mercille, who is the Director General, Sales Tax Division; and Mr. Baddeley, Policy Analyst.

The floor is yours, Mr. Coulombe.

April 24th, 2018 / 3:45 p.m.
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Gervais Coulombe Director, Sales Tax Division, Tax Policy Branch, Department of Finance

Thank you, Mr. Chair.

The Government of Canada applies an excise duty to all tobacco products sold in the Canadian market. The tobacco excise duty rates are currently set to automatically increase every five years to account for inflation. Under this approach, tobacco excise duty rates would be adjusted on December 1, 2019. Budget 2018 proposed to advance the existing inflationary adjustments for tobacco excise duty rates to occur on an annual basis rather than every five years. To ensure consistency in the excise framework, inflationary adjustments will take effect on April 1 of every year, starting in 2019.

Effective February 28, 2018, the day after the budget, tobacco excise duty rates were adjusted to account for inflation since the last inflationary adjustment that was made in 2014. That first adjustment was equivalent to an increase of about $1.29 per carton of 200 cigarettes.

The budget also proposed to increase excise duty rate by an additional $1 per carton of 200 cigarettes, along with corresponding increases to the excise duty rates on other tobacco products like chewing tobacco or cigars.

Overall, as of February 28, 2018, the excise duty rate on 200 cigarettes increased by $2.29, rising from $21.56 per carton to $23.85 per carton. That translates into an increase of about 29 cents per pack of 25 cigarettes.

An inventory tax was also applied to inventories of more than 30,000 cigarettes, which is equivalent to 150 cartons of 200 cigarettes, held by manufacturers, importers, wholesalers, and retailers as of the end of February 27, 2018. This measure generally applies as of the day after the budget, and details of the measure are found on pages 39 and 40 of the budget supplementary information booklet. The clauses implementing these measures are all under part 2, covering clauses 47 to 67 of Bill C-74.

This completes the introductory remarks for part 2.

Thank you.

April 24th, 2018 / 3:35 p.m.
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Conservative

The Vice-Chair Conservative Pierre Poilievre

I call to order the meeting. We're dealing with Bill C-74, the budget implementation bill. It was referred yesterday to committee.

We have with us today a number of Finance Canada officials and an official from the Department of Veterans Affairs. They will be making short presentations on parts 1, 2, and 4 of the bill, and then we'll go to questioning. If time allows, we may move on to parts 3 and 5 of the bill. If not, we'll be dealing with those, plus part 6, at our meeting tomorrow.

I trust the committee is satisfied with that approach.

Hearing no objections, we'll start with part 4. We have Madam Norrie, Acting Senior Director at the Policy Directorate of the Department of Veterans Affairs.

Ms. Norrie, the floor is yours, on part 4, “Canadian Forces Members and Veterans”.

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.

Applicability of Standing Order 69.1 — Speaker's RulingPoints of OrderGovernment Orders

April 23rd, 2018 / 5:30 p.m.
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Liberal

The Speaker Liberal Geoff Regan

I am now prepared to rule on the point of order raised earlier today by the hon. member for New Westminster—Burnaby concerning the applicability of Standing Order 69.1 to Bill C-74, an act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures.

I would like to thank the hon. member for New Westminster—Burnaby for raising this matter, as well as the Parliamentary Secretary to the Leader of the Government in the House of Commons for his comments.

The hon. member argued that Bill C-74 is an omnibus bill, as defined under Standing Order 69.1, as it amends more than 40 acts and contains several different initiatives. He is concerned, in particular, by a new act contained in the bill, namely the greenhouse gas pollution pricing act. The hon. member acknowledged that this measure has been mentioned in the budget documents. However, he found it disproportionate that these few paragraphs, providing a brief overview of the government's intentions in relation to carbon pricing, represent 215 pages in the bill. He is of the view that this goes against the spirit of the Standing Order. For this reason, he feels the exemption provided for budget implementation bills by Standing Order 69.1(2) should not apply and that the measure should be voted on separately.

In his intervention, the hon. parliamentary secretary to the government House leader expressed his disagreement. He noted that page 151 of the budget document contains a section called “Pricing Carbon Pollution and Supporting Clean Growth”. In his view, this passage contained in the budget satisfies the requirement contained in Standing Order 69.1(2), thereby excluding Bill C-74 from the application of Standing Order 69.1(1).

The Speaker has the power to divide the questions, for the purposes of voting, on any motion for second and third reading of a bill in circumstances where the bill contains a number of unrelated provisions. The matter before us today concerns paragraph (2) of that Standing Order, which makes an exception for budget implementation bills. Standing Order 69.1(2) reads as follows:

The present Standing Order shall not apply if the bill has as its main purpose the implementation of a budget and contains only provisions that were announced in the budget presentation or in the documents tabled during the budget presentation.

The provisions identified by the hon. member for New Westminster—Burnaby were indeed announced in the budget, as he himself acknowledged. The Chair has reviewed the relevant sections of the budget document cited by both the hon. member and the hon. parliamentary secretary, as well as the relevant portion of the bill. I believe there is a direct link between what was announced and what is contained in Bill C-74. I do not, however, believe it is for the Chair to determine if the proportions of a measure correspond sufficiently to the amount of the reference to it in the budget documents. If the measures are contained in the budget documents, the exemption of Standing Order 69.1(2) applies. Therefore, I do not believe it would be appropriate to have a separate vote on the provisions relating to the greenhouse gas pollution pricing act.

Finally, I would like to point out that Bill C-74 was introduced almost four weeks ago and debated on several days since then. As I mentioned in my ruling of November 7, 2017, for everyone's benefit I would encourage hon. members to raise their arguments as early as possible after a bill is introduced.

I thank all hon. members for their attention.

Budget Implementation Act, 2018, No. 1Government Orders

April 23rd, 2018 / 5:15 p.m.
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Liberal

Raj Grewal Liberal Brampton East, ON

Madam Speaker, I am pleased to have the opportunity to rise in the House and discuss measures we are introducing through Bill C-74. The bill proposes important measures related to our budget 2018. With our latest budget, we are putting people first and ensuring equality and fairness for all Canadians.

We are doing this in a number of ways. These include initiatives that allow for more equal share of parental leave, an initiative to support the participation of women in the workforce, and the introduction of proactive pay equity legislation in federally regulated sectors.

We are also working hard to support Canada's most vulnerable segments of society, including seniors. The measures introduced in Bill C-74 help to do just that. It is no secret that Canada's population is aging, and Canadians are living longer and more healthy lives. This increasing longevity is good news and should be celebrated, because it brings with it more wisdom, expertise, and experience in society. However, this demographic shift also means that we need to adjust our policies and programs to ensure they remain relevant.

We have a growing seniors population, with over six million people who are 65 years of age or older. In the next 25 years, that number is estimated to almost double, to 11 million people, representing one-quarter of Canada's population. There is no doubt that private and public institutions alike must adapt, as the significant demographic shift creates new opportunities as well as challenges.

Our government places enormous value on the contribution that seniors have made and will continue to make in our communities, workplaces, families, and our country. It goes without saying that they should have access to income security that will allow them to live a safe, secure, and dignified retirement.

We have already taken concrete steps to ensure that seniors will have that dignified retirement. In the area of income security, it is well known that we have restored the eligibility age for old age security and guaranteed income supplement from age 67 back to 65, and for allowance benefits from age 62 back to 60. This is putting thousands of dollars into the pockets of Canadian seniors and keeping approximately 100,000 future seniors from falling into poverty. Since 2016, we have also increased the top-up of the guaranteed income supplement payment by $947 per year for single recipients. This has improved the financial security of close to 900,000 vulnerable seniors and is lifting approximately 13,000 seniors out of poverty. Seventy per cent of those seniors happen to be women. We are also ensuring that senior couples who receive GIS and allowance benefits and live apart for reasons beyond their control, for example, because of long-term care requirements, can receive higher benefits based on their individual incomes.

The Canada pension plan is one of the most important parts of our social support system. It is with great pride that I remind the House that in March 2017, our government enacted legislative changes to enhance the Canada pension plan to ensure greater financial security for future seniors by increasing CPP retirement benefits, and providing larger benefits for disabled contributors, widows, and widowers. The amount that Canadians pay into the plan before retirement will gradually rise over a seven-year period, starting in 2019. Increased benefits will build up gradually with each year of contributions to the CPP enhancement. When workers who participated in the enhancement for their entire careers collect retirement pensions, the CPP enhancement will increase the maximum CPP retirement pension by approximately 50%. These CPP enhancements mean more money for Canadians when they retire, so they can worry less about their savings and focus more on enjoying time with their families.

With the action taken by Quebec to enhance the Quebec pension plan in a similar fashion, all Canadians can now look forward to a safer and more secure retirement.

Building on that success, as part of the 2016-18 triennial review, federal and provincial ministers of finance agreed to more changes that will improve the CPP without increasing legislated contribution rates. These changes will provide further support from CPP enhancements for parents and people with disabilities. In our latest budget, we have confirmed that the government would move forward with these changes in 2019, in addition to those established through the CPP enhancements. With Bill C-74 we would put our promise to Canadians in action to create a better CPP for seniors today and into the future. This is why we are asking for the House's full support of Bill C-74.

The changes we are proposing in this bill include features that would protect the value of retirement benefits under the CPP enhancement for parents who take time off work to care for young children and for persons with disabilities. They also include a raise in the survivor's pension for individuals who become widowed under age 45 as well as a top-up benefit for disabled retirement pension recipients under the age of 65. We would increase the death benefit to its maximum value of $2,500 for all eligible contributors.

It is important to note that Bill C-74 would also make the required amendments to maintain portability between the CPP and the enhanced Quebec pension plan when those enhancements come into effect.

As I have stated, with budget 2018, we have committed to putting people first and ensuring quality and fairness for all Canadians. Part of that commitment means taking informed steps forward in our efforts to advance equality, especially for women, because we believe that equality between Canadian women and men will lead to greater prosperity. We are applying this lens to everything we do, and the changes we are proposing in Bill C-74 are no exception.

The changes we are making to the Canada pension plan are going to go a long way in supporting all future retirees, including, in particular, women. We know that women are more likely than men to take time away from work to raise their children, and let us not forget that women are also more likely to outlive their partners. We are making these changes because it is the right thing to do and is the smart thing to do to help seniors and advance equality for women to the benefit of all Canadians.

We know that Canadians work hard every day to support themselves and their families and to keep our economy growing. When it comes time to retire, Canadians deserve to do so with support from the very society they helped build and maintain. It goes without saying that Canadians should have access to income security that will allow them to live a safe, secure, and dignified retirement.

I am proud to say that through Bill C-74, we would continue to make that goal a reality. I encourage my colleagues in this House to support this bill and help create a better retirement for those who work so hard, for this generation and for generations to come. We owe it to all Canadians to pass this bill.

Budget Implementation Act, 2018, No. 1Government Orders

April 23rd, 2018 / 4:45 p.m.
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Liberal

Colin Fraser Liberal West Nova, NS

Madam Speaker, I am very pleased to rise today in support of Bill C-74, an act to implement certain provisions of the budget tabled in Parliament on February 27, 2018, and other measures.

First, I would like to talk about why this bill is so important to Canada as a whole. Then I will highlight some of the specific measures that will help my beautiful riding of West Nova and, most important, its people.

This budget continues to build on the strong foundation for growth that our government began putting into place when it took office just over two years ago. In that time, Canada's economic growth has been fuelled by the middle class, and there has been more support for those working hard to join it. Because of the hard work of Canadians, together with historic investments in people and communities, more than 600,000 good new jobs have been created right across Canada. Most of these are solid, full-time jobs. Consequently, under this government, the Canadian unemployment rate is at its lowest in my lifetime.

Also, Canada now has the best balance sheet of any G7 country, with the lowest debt-to-GDP ratio, and the downward trend of that ratio will continue into the future. Our debt as a portion of our economy is shrinking steadily and will soon reach its lowest point ever in my lifetime.

However, while the Canadian economy is doing very well, the most important indicator for any government is not some economic formula, but rather how people are doing. Do people have the tools to lift themselves up, to make their communities stronger and more vibrant, to be secure in the knowledge that they will have a dignified retirement, to help children living in poverty, to ensure veterans are looked after, and to ensure we position Canada to allow our industries to flourish?

While we know the economy is doing well and that thing are on the right track, we also know there is much more work to do so all Canadians have the opportunity to reach their full potential and, indeed, so people end up doing well. Our government wants a real and fair shot at success for all our people.

Let us start with the Canada workers benefit. Budget 2018 introduces the new Canada workers benefit, a more generous and accessible benefit that will put more money in the pockets of low-income workers than the income tax benefit it replaces. For example, a worker making $15,000 a year will get about $500 more in 2019. By allowing these low-income workers to keep more of their paycheque, it encourages more people to enter the workforce and it will deliver real help to two million Canadians, including 45,000 Nova Scotians who are working hard to join the middle class. This new measure will lift about 70,000 working individuals out of poverty and will promote economic independence for so many who would otherwise be left behind.

Let us turn to the Canada child benefit. Speaking of lifting people out of poverty and giving them opportunity, the CCB was introduced in 2016 and provides more support for nine out of 10 Canadian families. With the measures in budget 2018, the six million children currently benefiting from the CCB will continue to benefit for the long term, because it will be indexed, starting this July, to keep up with the cost of living.

In West Nova, the effects of the CCB are real. Thirteen thousand children are benefiting and over $4.5 million each month are being invested in the well-being of the kids in my riding. As a result, hundreds and hundreds of children in western Nova Scotia are no longer living in poverty and many are now able to receive adequate school supplies, join minor hockey, take dance or music lessons, have warm clothes for the winter, or go to summer camp. This is real and this is making a substantial difference in the lives of children in West Nova while also helping our local economy.

Let us talk about security retirement for our seniors. Like many members of rural ridings, I represent many seniors and I am so pleased that our government supports them. While there is more work to do, we restored the eligibility age of old age security and GIS from 67 to 65, and increased the GIS by 10% for single seniors. Also, working co-operatively with the provinces, the Canada pension plan has been strengthened for the long term. In fact, it will result in an increase of the maximum CPP retirement pension by about 50%, phased in over time, and it will mean even greater support to persons with disabilities who need support from their government.

As the member of Parliament for West Nova, an area with Canada's most lucrative fishery in lobster, scallops, and other seafood, it is critical to me that the fishing industry, which is the backbone of the economy in southwestern Nova Scotia, is supported. That is why I, along with other colleagues, have been advocating for increased investments in our small craft harbours to allow for the continued growth of fisheries operations.

I am very pleased the government has responded in budget 2018 with an investment of an extra $250 million over two years into our critical harbour infrastructure. This will help expand capacity and support the flourishing seafood industry being able to get its product off the boats and to world markets.

We know that with the coming into force of the European trade deal, CETA, and now the CPTPP, the demand for our seafood exports will continue to grow. This will diversify our customer base and sustain the high prices our fishermen have been getting for their lobster and other high-quality seafood. This makes a huge difference to our local economy in southwestern Nova Scotia.

I am also fortunate not only to represent an area with one of Canada's most important fisheries, but also to represent 14 Wing Greenwood, the largest air force base on the east coast. As a result, I represent many veterans all across my riding. It is vitally important that we support them for all they have done in their service to Canada. We know there is lots more to do, and we know that some may not yet know about the investments being made, but we are on the right track, and we are making things better for our veterans.

The government has made substantial investments to benefits and services for veterans and their families, so far totalling $10 billion. This includes new education and training benefits and expanded services to families of medically released veterans. We have reopened offices, increased the earnings loss benefit, and the disability award. There will be an option for a pension for life rather than the lump sum amount. There will be more front-line staff, more for mental health, and a new caregiver benefit for those taking care of ill and injured veterans.

Budget 2018 will expand the medical expense tax credit to include the cost of psychiatric service dogs that are so important in the support they provide to many of our veterans.

We know there is more to do, and I am committed to working with our government and continuing to advocate for the veterans I represent, but the fact is clear that we have made substantial investments and we are really beginning to fix the damaged system left to us by the Conservative government.

I am proud of the Acadian communities in West Nova, and I fully support them in protecting and promoting their cultural heritage, as well as our official languages.

Our government recognizes the importance of supporting official languages across Canada and is serious about its duty to actively promote the development of official language minority communities. We recently announced an action plan for official languages, which represents the largest investment in official languages in over 15 years. We have listened to the needs of these communities, and budget 2018 meets their expectations.

Our budget will invest in our community and cultural organizations, such as the Société acadienne de Clare, the Conseil acadien de Par-en-Bas, and the Université Sainte-Anne in my riding of West Nova, so they can continue their important work preserving and promoting Acadian culture and the French language in my riding.

Budget 2018 will support radio stations and newspapers like CIFA and Le Courrier de la Nouvelle-Écosse. Despite the challenges faced by francophone media outlets in minority communities, they continue to offer content that reflects the French-speaking Acadian community they serve.

When we look at this bill to implement budget 2018, we see a vision for the future of Canada, one that builds on the foundation already laid by this government and one that continues to invest in our communities and their people so that all Canadians have a real and fair shot at success no matter what circumstances they were born into, so they can have a dignified retirement. It is a budget that continues to sustain our strong economic performance well into the future and keeps Canada on top as the very best country in the world.

That is why I am proudly supporting Bill C-74.

Budget Implementation Act, 2018, No. 1Government Orders

April 23rd, 2018 / 4:15 p.m.
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Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Madam Speaker, what a pleasure and privilege it is to be able to stand in this chamber and speak to the budget implementation bill. It is a bill that continues to build on what I believe is a very progressive government that understands how important it is to support Canada's middle class and those aspiring to be a part of it, to give a helping hand in trying to deal with the issue of tax inequities by having a special tax on Canada's wealthiest one per cent. We have had so many accomplishments in such a short period of time. I have said this in the past and I will repeat it now. Under this particular government, we have seen so much take place in terms of budgetary measures and legislative measures, which have had a positive and profound impact on supporting those who need it the most, Canada's middle class and those aspiring to be a part of it.

When I listen to opposition members, if I may focus on the Conservatives first and foremost, there are two things that I have come to realize. The Prime Minister talked about it at our wonderful convention that we had over the weekend. One of those is the fact that there is no change with the Conservative Party. It is almost as if Stephen Harper is still leading the party. It is absolutely amazing to see how much the Conservatives still remain out of touch with what Canadians expect of government. When I look at the ideas that the Conservatives attempt to bring over to this side of the House, it can be confusing at times. Last week, for example, we were supposed to talk about the priorities of the government. As members will recall, the members of the official opposition did not want to debate Bill C-74. Today the Conservatives are saying that they want to debate it more, yet last Monday they did not want to debate it. In fact, they brought in a motion to deal with another report as opposed to the budget. I can understand why. I can appreciate that they see how effective our budgets have been since we have taken governance.

We have worked with Canadians. We have empowered Canadians through things such as tax breaks, the Canada child benefit, something that will be indexed because of this piece of legislation. We are working with and supporting Canadians. We are supporting our communities through infrastructure dollars, with record amounts of money going into Canada's infrastructure in every region of our country. By doing that, we are giving additional strength to Canada's middle class and building our economy. By working with Canadians, we are seeing some amazing numbers. Most important is in the area of jobs. There are 600,000-plus jobs that have been created in just over two years by this government in working with many different stakeholders, in particular Canadians in every region of our country. I believe that this government has been acting on what we committed to Canadians back in 2015, and that was real change. We have seen that day in and day out, in terms of the different types of policies we have debated inside this chamber, and most importantly shared with Canadians coast to coast to coast.

I want to pick up on one issue that has been very important to me personally, and I know has been also very important to my daughter Cindy, who is an MLA in the Manitoba legislature. That is the issue of pharmacare. The pharmacare issue embodies what I believe is a very important and progressive step forward that we need to take, that we have been waiting for generations to see some tangible movement on. This Prime Minister along with this cabinet and caucus believe that we need to advance the idea. In fact, we had a standing committee, made up of members from all sides of this House, which reported last week some ideas in terms of how we can advance the idea of “one prescription”, where prescription drugs would be part of the Canada health system.

Canadians want our national government to demonstrate some leadership on this issue, and I believe we have. Earlier today, we heard the Prime Minister talk about some of the interim measures we have taken to ensure that prescription drugs are more affordable. At the constituency level, there have been many petitions and many discussions. In fact, in the last number of months I have tabled many petitions dealing with a strong national pharmacare program. If there ever was a reason to believe that it is actually doable, all one needs to do is take a look at what the government has done on a couple of specific initiatives in the last two years, in particular the Canada child benefit program.

I believe the government today has put into place, through the Canada child benefit program, a fantastic social program that has lifted tens of thousands of children out of poverty. We were able to do that in a relatively quick fashion.

On the issue of pharmacare, we recognize that there is a responsibility on the part of the national government to work with the different stakeholders. That is why, in the most recent budget, we see that there has been a task force of sorts put together, headed by a former minister of health in the Province of Ontario, to look at ways of possibly implementing a national pharmacare program.

We just came through a fantastic convention in Halifax, where Atlantic hospitality was at its best. I was very proud to listen to the speech delivered by the Prime Minister. If some of my colleagues across the way want to get a good sense of what has been taking place in the last couple of years, I would highly recommend that they YouTube it. I am sure they will enjoy it. There were 3,000-plus Liberals in Halifax who loved it.

Personally, I really enjoyed the fact that every constituency was represented. I believe there were 3,000 Liberals attending, and I think 50% of those were individuals who were attending a national convention for the first time. The number of young people attending that convention was truly amazing.

The number one resolution was on pharmacare. The Liberal Party, under the leadership of our current Prime Minister, has recognized the value of yet another fantastic social program. For those who try to cast doubt on the desire and the drive of the government, I would recommend they take a look at what we have accomplished in the last two years, in particular with the Canada child benefit.

I believe there is the opportunity for Canadians to have hope once again that after many years of no leadership on the health care file, we finally have a Prime Minister, a Minister of Health, and a government caucus who are committed to finding out if we can make this happen. If we can make it happen, it will happen.

We are working hard and being diligent in crossing the t's, dotting the i's, working with the different levels of government, and working with Canadians to find out what they would like to see and how we might be able to proceed on this particular file.

Budget Implementation Act, 2018, No. 1Government Orders

April 23rd, 2018 / 3:55 p.m.
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NDP

Sheri Benson NDP Saskatoon West, SK

Madam Speaker, I rise today to speak to Bill C-74, the budget implementation bill. It is a daunting task, given the bill is over 500 pages and amends 44 pieces of legislation. It is an omnibus bill for sure, which is unfortunate in and of itself.

What is even more unfortunate is that the bill does not include all the things the government put forward in the budget. Just prior to getting up to give my speech, I made a comment about the fact that the pay equity legislation was not included and no dollars were in the budget to implement that pay equity legislation should it eventually come. This is disappointing.

The bill misses bringing a lot more needed change to address the inequity in the lives of people, to ensure the change that everyone pays their fair share of taxes, and the change we need to build an economy that is working for everyone, not just a few.

Child care, housing, and affordable prescription medication are the three issues that my constituents in Saskatoon West see as a need for real change, and fast. I raised these same issues in my very first speech as an elected member of Parliament. Three budgets later, I am still raising these issues, and those whom I represent are still waiting for the promised change.

Many in my riding had high hopes that the Liberals, given their promises on the campaign trail, would have moved the needle substantially on all three issues by this point in their mandate.

Let us start with child care. There are zero new dollars for child care in this budget. To date, the government's investment in child care has been more symbolic than anything. It is not a priority for the government. If it were, three budgets later we would not be talking about the lack of affordable and accessible child care.

In December of last year, I had the honour of meeting with an extraordinary group of women. They were participants in the trade journey program at the YWCA in Saskatoon. The trade journey program is a bridging program for women who are seeking a career in one of three trades: carpentry, plumbing, or electrical. I was invited to share some of my tips and, dare I say, survival skills for working in a male-dominated profession. My workplace was politics and their soon-to-be workplaces would be in the skilled trades.

As often is the case, I find myself so impressed and in awe of the determination of these women and their tenacity in the face of the both personal and institutional challenges of sexism and racism. As with almost 99.99% of the conversations I have with women in my riding, the conversation turned to child care. They were emphatic of the need for and the importance of affordable and accessible child care to their success as journey persons. They just could not understand why the government did not understand how critical child care was to their success in the workplace and to the health and well-being of themselves and their families. I agreed with them. I really did not have an answer for them as to why, regardless of what political party was in power, women continued to have to fight for child care.

The fight continues as we once again see a federal government paying lip service to one, if not the one, social policy that would improve the lives of so many women in our country and really increase the productivity of the country as a whole. A truly feminist government would understand this and by now would have invested what was needed to bring about real change for women.

Let me turn to affordable prescription medication. Almost a million Canadians give up food and heat to afford prescriptions in Canada. Affordable prescription medication is key to the health and well-being of all Canadians, to a sustainable universal health care system, and to the people in my riding of Saskatoon West. In conversation with older adults in my riding, the high costs of medication always comes up. It is raised because of the challenges of living on a fixed income and with that, the challenges of maintaining a home or an apartment, to be able to pay rent or a mortgage, and to pay for medication.

What happens, as was documented in a recent study, because of the unaffordability of medication? People get sick, they stay sick, and they end up going to the doctor for multiples visits and, in some cases, even end up in the hospital.

More than 1.6 million Canadians, just over 8% of people who were prescribed medication in Canada, did not fill their prescriptions or skipped doses because they could not afford it. In a riding with a median income below $40,000 a year, I represent a lot of people who are doing just that: skipping doses or not filling prescriptions at all. The UBC study that surveyed over 28,000 people found that people without insurance, lower-income people, and young people were more likely to struggle to afford medication. Women were twice as likely as men to report that they struggle to afford medication, as were indigenous people.

Canada is the only country with a universal health care system that does not include free access to prescription medication. It is time, after studying the issue to death, by governments, researchers, by Parliaments, to stop kicking the proverbial can down the road. I would like to use a phrase made famous by a certain shoe company, “Let's just do it”. However, instead we are going to study it again and offer ourselves further advice. It is time that the government moved from the hope to the hard work of pharmacare.

The only people benefiting from yet again more talk, more consultation, and no action are the pharmaceutical companies, which continue to gouge Canadians and the health care system. Canadians pay some of the highest drug costs in the world. If, right now, Canadians were paying even just the average prescription drug costs of OECD companies, we would have paid $3.6 billion last year. Instead, we paid $13.7 billion. That is a lot of home care services. That is a lot of money to address the crisis in mental health for young people.

Most of us are tired of hoping and wishing for the day of a universal prescription drug plan for all Canadians. It is time to stop giving excuses and start the work of implementing pharmacare in this country.

My final comments on the trifecta of challenges that folks in my riding face are on housing.

Last November, the highly anticipated national housing strategy was released. However, in the budget implementation act, we see no new legislation. The Prime Minister clearly stated at the launch of the national housing strategy that housing rights are human rights. However, instead of legislation and debate on a bill to legislate the right to housing, we continue with consultation. I believe that we need much more hard work on this file. We need more specifics. We need promised new investment now and not years down the road, and certainly not after the next federal election.

To elaborate, the $40-plus billion of planned spending connected to the national housing strategy over the next 10 years only budgeted $11.2 billion of new money. The rest of the funding envelope is a rearranging of current programs, loan funding, and of course the important matching funding from the provinces and territories.

The government's response to what, for many, is a crisis in affordability and a rising number of people living on the street is not good enough. We have a minimal investment of new dollars, the largest allocation of new investment coming three years down the road, and we have a huge 10-year horizon for the investment. The speed and the amount of the investment does not match the urgency faced by many communities, including my own. When we look at the amount of investment specifically focused on those Canadians with no roof over their heads, and the target number of reducing the number of Canadians who are homeless by 50% over 10 years, we do not see a government with the resources or the plan in place to truly recognize housing as a human right.

We know that the growing number of Canadians living on the street without the safety and security of a place to call home are often young people, and a large number of those young people are those who have aged out of the foster care system and are LGBTQ2 youth. We must speed up the investment. We must set more aggressive targets. We must work harder and set a much more courageous timeline if we are to make a difference in the lives of these young Canadians.

We are still waiting for a separate strategy for indigenous people living in urban centres. We saw a very modest amount of funding in the previous budget, but no detail.

Sorry, I did not realize that I had run out of time. I look forward to offering more during questions.

The House resumed consideration of the motion that 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.

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.

Budget Implementation Act, 2018, No. 1Government Orders

April 23rd, 2018 / 1:50 p.m.
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Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

Mr. Speaker, I guess I should consider myself lucky to be speaking to the budget bill, Bill C-74. I say that because many of my colleagues will not have the opportunity to do that. The Liberal government has once again shut down debate, and this is an important bill.

It is bad enough that the government was planning to spend $18 billion in deficit this year, but we have found out from the Parliamentary Budget Officer that now it is going to be $22 billion. It seems to me that we should take more than one day for each $5.5 billion of Canadian taxpayer money that is going to be spent by the government. I am very disheartened that the Liberal government would once again shut down debate.

In the small amount of time I have, I want to cover a few things: infrastructure, some issues with the border, health, seniors, and a number of my concerns about the tax changes that have been announced.

With respect to infrastructure, the Liberal government was elected on a promise that it would run tiny deficits and put money into infrastructure in municipalities. Here we are, and it has not spent even 40% of the money that has been pledged. On top of that, the government took $15 billion away from municipalities to put it into an infrastructure bank that is not going to build roads and bridges in communities like mine.

I had a project in my community that was going to create 3,000 well-paying jobs. It was called the oversized load corridor project. I discussed this project with the Minister of Infrastructure for nearly three years. He said the government was in support of the project. The province was in support. The municipality was in support. I needed $6 million from the federal government in infrastructure money to create 3,000 well-paying jobs in Sarnia—Lambton. The government told me to wait for the trade corridor funding, which was coming. Then it put the Minister of Transport in charge of that fund, and I have just found out that he will not give $6 million of infrastructure money to Sarnia—Lambton to create 3,000 Canadian jobs.

I am not sure what kind of priorities the government has when it cannot fund 3,000 jobs with just $6 million. It spent $10 million to put an ice rink on Parliament Hill, which created zero long-term Canadian jobs. When it comes to infrastructure spending, I certainly think there is a big problem.

The Sombra ferry in my riding is a border crossing. The other thing I would say with respect to infrastructure is that the government seems to be able to put hundreds of millions of dollars in the budget to support illegal immigrants, but it cannot put $2 million in the budget to restore the border crossing at the Sombra ferry. Once again, I feel that the Liberal government's priorities are terrible.

In the words that have been said so often in this chamber, “never has a government spent so much to accomplish so little.”