Budget Implementation Act, 2018, No. 2

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

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

Sponsor

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

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

Part 1 implements certain income tax and related measures by
(a) introducing rules intended to provide greater certainty with respect to various tax consequences arising from certain foreign divisive reorganizations;
(b) ensuring that the existing cross-border anti-surplus stripping rule cannot be circumvented through transactions involving the use of partnerships or trusts;
(c) introducing rules to prevent misuse of the foreign accrual property income regime through the use of tracking interests involving foreign affiliates;
(d) ensuring consistency between the trading or dealing in indebtedness rules and the investment business rules within the foreign accrual property income regime;
(e) ensuring that the at-risk rules apply appropriately at each level of a tiered partnership structure;
(f) providing that the Minister of Public Safety and Emergency Preparedness can determine international operational missions for the purpose of the deduction available for income earned by members of the Canadian Forces or police officers on such missions;
(g) amending the synthetic equity arrangement rules and securities lending arrangement rules to prevent the artificial generation of losses through the use of equity-based financial instruments;
(h) ensuring that social assistance payments under certain programs do not preclude individuals from receiving the Canada Child Benefit;
(i) ensuring that an individual who is eligible to receive the Canada Workers Benefit can receive the benefit without having to claim it;
(j) introducing a refundable tax credit for the purposes of the climate action incentive;
(k) providing allocation rules for losses applied against Part IV taxes;
(l) preventing the creation of artificial losses on shares held as mark-to-market property by financial institutions;
(m) revising the rules relating to the non-partisan political activities of charities;
(n) ensuring that a taxpayer is subject to a three-year extended reassessment period in respect of any income, loss or other amount arising in connection with a foreign affiliate of the taxpayer;
(o) providing the Canada Revenue Agency with an extended reassessment period of an additional three years, to the extent that the reassessment relates to the adjustment of a loss carryback for transactions involving a taxpayer and non-resident non-arm’s length persons;
(p) extending the reassessment period of a taxpayer by the period of time during which a requirement for information or compliance order is contested;
(q) requiring that information returns in respect of a taxpayer’s foreign affiliates be filed within 10 months after the end of the taxpayer’s taxation year;
(r) enabling the disclosure of taxpayer and other confidential tax information to Canada’s bilateral mutual legal assistance treaty partners for the purposes of non-tax criminal investigations and prosecutions of certain serious crimes; and
(s) providing a deduction for employee contributions to the enhanced portion of the Quebec Pension Plan.
Part 1 also amends the Mutual Legal Assistance in Criminal Matters Act to, among other things, define the term “agreement” as applying, among other things, to tax information exchange agreements and tax treaties to which Canada is a party, and provide for orders to produce financial information for the purposes of investigation and prosecution of certain offences set out in subsection 462.‍48(1.‍1) of the Criminal Code. The enactment also amends paragraph 462.‍48(2)‍(c) of the Criminal Code to provide that information may also be gathered under Part IX of the Excise Tax Act and under the Excise Act, 2001.
Part 2 implements certain Goods and Services Tax/Harmonized Sales Tax (GST/HST) measures by
(a) replacing the requirement that GST/HST be collected on a sale of carbon emission allowances with a requirement that the purchaser self-assess that GST/HST;
(b) extending the assessment period for group registered education savings plan trusts that make a special relieving election in respect of their past HST liability;
(c)  introducing GST/HST rules in respect of investment limited partnerships;
(d) clarifying the intended tax policy of excluding books that are sold by a public service body from the GST/HST rebate for printed books;
(e) introducing amendments similar to those to the Income Tax Act to extend the assessment period of a person by the period of time during which a requirement for information or compliance order is contested; and
(f)  introducing amendments similar to those to the Income Tax Act to enable the disclosure of confidential information to Canada’s bilateral mutual legal assistance treaty partners, or to Canadian police officers, for the purposes of non-tax criminal investigations and prosecution of certain serious crimes.
Part 3 implements certain excise measures by
(a) broadening the refund regime in respect of excise tax on diesel fuel to allow a vendor to apply for a refund where a purchaser will use excise tax-paid diesel fuel to generate electricity, if certain conditions are met;
(b) introducing an anti-avoidance excise measure relating to the taxation of cannabis in respect of the rules establishing the value of a cannabis product on which an ad valorem duty is calculated;
(c)  introducing amendments to the Air Travellers Security Charge Act and the Excise Act, 2001 that are similar to those to the Income Tax Act to extend the assessment period of a person by the period of time during which a requirement for information or compliance order is contested;
(d) introducing amendments to the Excise Act, 2001 that are similar to those to the Income Tax Act to enable the disclosure of confidential information to Canada’s bilateral mutual legal assistance treaty partners, or to Canadian police officers, for the purposes of non-tax criminal investigations and prosecution of certain serious crimes; and
(e) making housekeeping amendments to the Excise Act, 2001 in order to ensure consistency between the English and French version of the legislation.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends the Customs Tariff in order to simplify it and reduce the administrative burden for Canadian businesses and the Government of Canada by consolidating similar tariff items that have the same tariff rates and removing end-use provisions where appropriate. The amendments also clarify existing tariff provisions and make other technical amendments.
Division 2 of Part 4 amends the Canada Pension Plan to modify the calculation of the amount to be attributed for a year in which a contributor is a family allowance recipient and their first or second additional contributory period begins or ends.
Subdivision A of Division 3 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to, among other things,
(a) establish thresholds below which the acquisition of control of certain entities, or the acquisition or increase of a substantial investment in them, does not require the approval of the Superintendent of Financial Institutions;
(b) allow financial institutions to invest in the Canadian business growth fund; and
(c) ensure that customers can provide consent electronically to receive electronic documents.
It also corrects a reference to the Insurance Companies Act in the Budget Implementation Act, 2018, No. 1.
Subdivision B of Division 3 of Part 4 amends the Canada Deposit Insurance Corporation Act to, among other things,
(a) make technical amendments to clarify the method of calculating insured deposits, to remove outdated references, to repeal certain provisions not yet in force and to clarify that withdrawals made following the amalgamation of two or more member institutions or the continuance as a federal credit union will be considered to be made from pre-existing deposits and that the separation of accounts following the amalgamation is limited to a period of two years;
(b) exclude amounts borrowed by the Canada Deposit Insurance Corporation under paragraph 60.‍2(2)‍(c) of the Financial Administration Act from the calculation of the Corporation’s total principal indebtedness; and
(c) clarify that the liquidator of a member institution of the Canada Deposit Insurance Corporation must not apply the law of set-off or compensation to a claim related to insured deposits.
It also repeals two sections of the Financial System Review Act.
Subdivision C of Division 3 of Part 4 amends the Office of the Superintendent of Financial Institutions Act, the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to, among other things, clarify that providing legally privileged information to the Superintendent of Financial Institutions does not constitute a waiver of the privilege.
Division 4 of Part 4 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to remove the right of persons to decide not to proceed further with importing or exporting currency or monetary instruments that are required to be reported.
Division 5 of Part 4 amends the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act to, among other things, allow for the application, within the offshore area, of the provincial greenhouse gas pricing regime and to confer powers and impose duties and functions on the Canada–Newfoundland and Labrador Offshore Petroleum Board for the application of that regime. It also amends the Greenhouse Gas Pollution Pricing Act to provide that the provincial regime does not apply if the offshore area is mentioned in Part 2 of Schedule 1 to that Act. Finally, it amends the Offshore Health and Safety Act to postpone the repeal of certain regulations.
Division 6 of Part 4 amends the Canada Business Corporations Act to set out criteria for identifying individuals with significant control over a corporation. The Division also sets out a requirement for a corporation that meets certain criteria to keep a register of individuals with significant control and requirements respecting the information to be recorded in it. Finally, the Division includes applicable offences and punishments.
Subdivision A of Division 7 of Part 4 amends the Patent Act in order to
(a) provide a regulation-making authority for the establishment of requirements for written demands relating to patents;
(b) specify that an act committed for the purpose of experimentation relating to the subject matter of a patent is not an infringement of the patent and that licencing commitments that bind the owner of a standard-essential patent or the holder of a certificate of supplementary protection that sets out such a patent bind any subsequent owners or holders;
(c) expand the rights of a person in respect of a claim in a patent who meets the requirements to be considered a prior user;
(d) ensure that patent prosecution histories may be admissible into evidence for certain purposes;
(e) clarify when a late fee must be paid in respect of divisional applications as well as when the confidentiality period begins in the case where a request for priority is deemed never to have been made.
Subdivision B of Division 7 of Part 4 amends the Trade-marks Act to, among other things,
(a) add bad faith as a ground of opposition to the registration of a trade-mark and for the invalidation of a trade-mark registration;
(b) prevent the owner of a registered trade-mark from obtaining relief for acts done contrary to section 19, 20 or 22 of that Act during the first three years after the trade-mark is registered unless the trade-mark was in use in Canada during that period or special circumstances exist that excuse the absence of use;
(c) clarify that the prohibitions in subparagraph 9(1)‍(n)‍(iii) and section 11 of that Act do not apply with respect to a badge, crest, emblem or mark that was the subject of a public notice of adoption and use as an official mark if the entity that made the request for the public notice is not a public authority or no longer exists; and
(d) modernize the conduct of various proceedings before the Registrar of Trade-marks, including by providing the Registrar with additional powers in such proceedings.
It also makes certain housekeeping amendments to provisions of the Trade-marks Act that are enacted by the Economic Action Plan 2014 Act, No. 1 and the Combating Counterfeit Products Act.
Subdivision C of Division 7 of Part 4 amends the Copyright Act in order to specify that certain information is not permitted to be included within a notice under the notice and notice regime and to provide for a regulation-making power to prohibit further types of information from being included within such a notice.
Subdivision D of Division 7 of Part 4 enacts the College of Patent Agents and Trade-mark Agents Act. That Act establishes the College of Patent Agents and Trade-mark Agents, which is to be responsible for the regulation of patent agents and trade-mark agents in the public interest. That Act, among other things,
(a) requires that individuals obtain a licence in order to act as patent agents or trade-mark agents and that licensees comply with a code of professional conduct;
(b) authorizes the College’s Investigations Committee to receive complaints and conduct investigations into whether a licensee has committed professional misconduct or was incompetent;
(c) authorizes the College’s Discipline Committee to impose disciplinary measures if it decides that a licensee has committed professional misconduct or was incompetent; and
(d) creates new offences of claiming to be a patent agent or trade-mark agent and unauthorized representation before the Patent Office or the Office of the Registrar of Trade-marks.
That Subdivision also makes consequential amendments to certain Acts.
Subdivision E of Division 7 of Part 4 amends the Bankruptcy and Insolvency Act to provide that intellectual property users may preserve their usage rights when intellectual property rights are sold or disposed of in an insolvency proceeding or when the agreement relating to such property rights is disclaimed or resiliated in such a proceeding. It also amends the Companies’ Creditors Arrangement Act to provide that intellectual property users may preserve their usage rights when intellectual property rights are sold or disposed of.
Subdivision F of Division 7 of Part 4 amends the Access to Information Act and the Privacy Act to provide that the head of a government institution may refuse to disclose, under either of those Acts, information that is subject to the privilege set out in section 16.‍1 of the Patent Act or section 51.‍13 of the Trade-marks Act. It makes a related amendment to the Pest Control Products Act.
Subdivision G of Division 7 of Part 4 amends the National Research Council Act to clarify that the National Research Council of Canada has the authority to dispose of all forms of intellectual property that it develops, including future rights to such property and to provide the Council with the authority to dispose of real, personal, movable and immovable property, complementing the current provision in the Act that allows it to acquire such property.
Subdivision H of Division 7 of Part 4 amends the Copyright Act in order to modernize the legislative framework relating to the Copyright Board so as to improve the timeliness and clarity of its proceedings and decision-making processes. More specifically, it repeals spent provisions and
(a) codifies the Board’s mandate and establishes decision-making criteria;
(b) establishes new timelines in respect of Board matters, including earlier filing dates for proposed tariffs and longer effective periods for approved tariffs, and empowers the Governor in Council to make additional timelines by regulation;
(c) formalizes case management of Board proceedings;
(d) reduces the number of matters that must be considered by the Board;
(e) streamlines procedural steps across different tariff contexts, maintaining differences between them only where necessary;
(f) amends relevant enforcement provisions, including the availability of statutory damages for certain parties in respect of Board-set royalty rates and enforcement of Board-set terms and conditions; and
(g) modernizes existing language and structure for greater clarity and consistency.
Division 8 of Part 4 amends the Employment Insurance Act to, among other things, increase the maximum number of weeks for which parental benefits may be paid if these benefits are divided between claimants. It also amends the Canada Labour Code to, among other things, increase the aggregate amount of leave that may be taken by employees under sections 206.‍1 and 206.‍2 if that leave is divided between employees.
Division 9 of Part 4 enacts the Canadian Gender Budgeting Act in order to state the Government’s policy of promoting gender equality and inclusiveness by taking gender and diversity into consideration in the budget process. It also establishes related reporting requirements.
Division 10 of Part 4 amends the Bank Act to strengthen provisions that apply to a bank or an authorized foreign bank in relation to the protection of customers and the public. It implements enhancements in the areas of corporate governance, responsible business conduct, disclosure and transparency, and redress. It also amends the Financial Consumer Agency of Canada Act to strengthen the mandate of the Financial Consumer Agency of Canada and grant additional powers to that Agency.
Division 11 of Part 4 amends the First Nations Land Management Act to give effect to amendments to the Framework Agreement on First Nation Land Management respecting, among other things, procedures for obtaining community approval of a land code, the lands to which a land code may apply, the addition of lands to First Nation land by order of the Minister and the transfer of capital moneys.
Division 12 of Part 4 amends the First Nations Fiscal Management Act to, among other things,
(a) enable more Aboriginal organizations and First Nations to benefit from the provisions of the Act in order to strengthen their financial management systems and give them access to long-term financing;
(b) address certain administrative issues identified by the bodies established under the Act; and
(c) provide another option for First Nations to access moneys held by Her Majesty for their use and benefit.
Division 13 of Part 4 amends the Export and Import Permits Act to give the Minister of Foreign Affairs the authority to issue an import allocation for goods that are included on the Import Control List under subsection 5(6) of that Act.
Division 14 of Part 4 enacts the Pay Equity Act to establish a proactive process for the achievement of pay equity by the redressing of the systemic gender-based discrimination experienced by employees who occupy positions in predominantly female job classes. The new Act requires federal public and private sector employers that have 10 or more employees to establish and maintain a pay equity plan within set time frames so as to identify and correct differences in compensation between predominantly female and predominantly male job classes for which the work performed is of equal value. The new Act provides for the powers, duties and functions of a Pay Equity Commissioner, which include facilitating the resolution of disputes, conducting compliance audits and investigating disputes, objections and complaints, as well as making orders and imposing administrative monetary penalties for violations of that Act. The new Act also requires the Pay Equity Commissioner to report annually to Parliament on the administration and enforcement of the new Act.
Division 14 also amends the Parliamentary Employment and Staff Relations Act to provide for the application of the Pay Equity Act to parliamentary employers with certain adaptations and without limiting the powers, privileges and immunities of the Senate, the House of Commons and the members of those Houses.
It also makes the Minister of Labour responsible for the administration of the Federal Contractors Program for Pay Equity.
Finally, it makes related and consequential amendments to certain Acts and repeals the section of the Budget Implementation Act, 2009 that enacts the Public Sector Equitable Compensation Act.
Subdivision A of Division 15 of Part 4 amends the Canada Labour Code to, among other things,
(a) provide five days of paid leave for victims of family violence, a personal leave of five days with three paid days, an unpaid leave for court or jury duty and a fourth week of annual vacation with pay for employees who have completed at least 10 consecutive years of employment;
(b) eliminate minimum length of service requirements for leaves and general holiday pay and reduce the length of service requirement for three weeks of vacation with pay;
(c) prohibit differences in rate of wages based on the employment status of employees;
(d) address continuity of employment issues when a work, undertaking or business becomes federally regulated or in cases of contract retendering; and
(e) update group and individual termination provisions by increasing the minimum notice of termination.
Subdivision B of Division 15 of Part 4 amends the Canada Labour Code to allow the Minister of Labour to designate a Head of Compliance and Enforcement who will exercise most of the powers and perform most of the duties and functions that are related to the administration and enforcement of Parts II, III and IV of the Code.
Division 16 of Part 4 amends the Wage Earner Protection Program Act to, among other things, increase the maximum amount that may be paid to an individual under the Act, expand the definition of eligible wages, expand the conditions under which a payment may be made under the Act and create additional requirements related to Her Majesty in right of Canada’s right of subrogation in respect of payments made under the Act.
Division 17 of Part 4 amends the Bretton Woods and Related Agreements Act, the European Bank for Reconstruction and Development Agreement Act and the Official Development Assistance Accountability Act to harmonize the periods within which the reports under those Acts must be laid before Parliament in order to better communicate Canada’s international development efforts. It also repeals the definition of “official development assistance” in the Official Development Assistance Accountability Act and confers the power to define this expression by regulation.
Division 17 also enacts the International Financial Assistance Act, which provides the Minister of Foreign Affairs and the Minister for International Development with powers, duties and functions to support the delivery of a sovereign loans program, an international assistance innovation program and a federal international assistance program that promotes the mitigation of or adaptation to climate change through repayable contributions.
Division 18 of Part 4 enacts the Department for Women and Gender Equality Act which, among other things, establishes the Department for Women and Gender Equality to assist the Minister responsible for that department in exercising or performing the Minister’s powers, duties and functions that extend to and include all matters relating to women and gender equality, including the advancement of equality in respect of sex, sexual orientation, or gender identity or expression and the promotion of a greater understanding of the intersection of sex and gender with other identity factors. It also contains transitional provisions. Finally, Division 18 makes consequential amendments to other Acts.
Division 19 of Part 4 enacts the Addition of Lands to Reserves and Reserve Creation Act which authorizes a Minister, designated by the Governor in Council, to set apart lands as reserves for the use and benefit of First Nations. The Division also repeals Part 2 of the Manitoba Claim Settlements Implementation Act and the Claim Settlements (Alberta and Saskatchewan) Implementation Act.
Division 20 of Part 4 amends section 715.‍42 of the Criminal Code to require the publication of any decision not to publish a remediation agreement or order related to that agreement and of any decision related to the review of such a decision, to specify that the court may make the first decision subject to a condition, including one related to the duration of non-publication, and to allow anyone to request a review of that decision.
Division 21 of Part 4 enacts the Poverty Reduction Act, which sets out two targets for poverty reduction in Canada.
Division 22 of Part 4 amends the Canada Shipping Act, 2001 to, among other things,
(a) authorize the Governor in Council to make regulations respecting the protection of the marine environment from the impacts of navigation and shipping activities;
(b) authorize the Minister of Transport to
(i) make an interim order to mitigate risks to marine safety or to the marine environment, and
(ii) exempt any person or vessel from the application of any provision of that Act or the regulations if doing so would allow the undertaking of research and development that may enhance marine safety or environmental protection;
(c) increase the maximum amount of an administrative penalty that the Governor in Council may fix by regulation;
(d) authorize the Minister of Fisheries and Oceans, pollution response officers and accompanying persons to enter private property in the case of a discharge of oil from a vessel or oil handling facility; and
(e) double the administration monetary penalties for certain violations.
Division 23 of Part 4 amends the Marine Liability Act to modernize the Ship-source Oil Pollution Fund, including, among other things,
(a) removing the Fund’s per-occurrence limit of liability;
(b) in the event that the Fund is depleted, authorizing the temporary transfer to the Fund of funds from the Consolidated Revenue Fund;
(c) modernizing the Fund’s levy so that the Fund is replenished by receivers and exporters of oil;
(d) ensuring that the Fund’s liability for claims for economic losses caused by oil pollution aligns with international conventions;
(e) providing that the Fund is liable for the costs and expenses incurred by the Minister of Fisheries and Oceans or any other person in respect of preventive measures when the occurrence for which those costs and expenses were incurred has not yet created a grave and imminent threat of causing oil pollution damage;
(f) authorizing the provision of up-front emergency funding out of the Fund to the Minister of Fisheries and Oceans for significant oil pollution incidents;
(g) creating an expedited, simplified process for small claims to the Fund; and
(h) providing for administrative monetary penalties for contraventions of specified or designated provisions under that Act.

Elsewhere

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

Votes

Dec. 3, 2018 Passed 3rd reading and adoption of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
Dec. 3, 2018 Passed 3rd reading and adoption of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
Dec. 3, 2018 Failed Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (recommittal to a committee)
Nov. 27, 2018 Passed Concurrence at report stage of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
Nov. 27, 2018 Failed Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
Nov. 27, 2018 Failed Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
Nov. 27, 2018 Failed Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
Nov. 27, 2018 Failed Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
Nov. 27, 2018 Failed Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
Nov. 27, 2018 Failed Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (report stage amendment)
Nov. 27, 2018 Passed Time allocation for Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
Nov. 6, 2018 Passed 2nd reading of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
Nov. 6, 2018 Passed 2nd reading of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures
Nov. 6, 2018 Failed 2nd reading of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures (reasoned amendment)
Nov. 6, 2018 Passed Time allocation for Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:30 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

Mr. Speaker, the biggest reason we have had to deal with deficits is that we have taken over from Liberal governments that have spent the cupboards absolutely bare. We come back in when the economy has changed and business investment has left the country because of the tax situations that Liberal governments have created. We come in as Conservative governments and have to put the books back in order, and so we have to take on debt load to try to bring business investment back to Canada to turn around the negative situation the Liberal governments continually put Canada in.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:30 p.m.

Conservative

Mark Warawa Conservative Langley—Aldergrove, BC

Mr. Speaker, my colleague's speech was thoughtful, highlighting that the government continues to fail, and its legacy of broken promises.

The government members have said they are investing in Canadians. Where is this money coming from that the Liberals are investing in Canadians? If they are spending, spending, spending, is it sustainable?

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:35 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

Mr. Speaker, my colleague from Langley—Aldergrove asked where the money is coming from. It is plain and simple where. It is coming from future Canadians, but they do not realize it yet, unfortunately. We cannot continue to wrack up deficit after deficit after deficit.

I came from a small business. If I ran my business that way, it would be bankrupt. If I ran my household that way, spending more every year than I was bringing in, either I would go bankrupt or I would pass on a huge debt load to my children and grandchildren.

However, that is what the current government seems to think it is okay to do. It boggles my mind how the Liberals think it is okay to pass on huge debt to future generations like they are doing.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:35 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I pointed out that it was the Conservatives who accumulated most of Canada's debt, almost 75% of it. The response I got was that the Liberals made them do it, so it is the Liberals who forced the Conservatives to do it. That is just not true.

The Paul Martin budget was a multi-billion dollar surplus. The cupboards were not bare. It was a multi-billion dollar surplus that Stephen Harper inherited. Even before the recession kicked in, that multi-billion dollar surplus was converted into a multi-billion dollar deficit.

I wonder if my colleague would change his mind, upon reflection, as opposed to trying to say that the Liberal Party made the Conservatives run deficits, and maybe take responsibility and allow for the fact that the Conservatives really do not know what they are talking about when it comes to deficits.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:35 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

Mr. Speaker, deficits arose with the great global recession of 2007-09. We were forced into running deficits to keep Canadians working. In fact, when we were running those deficits, it was the Liberals who kept screaming, from this side of the House at that time. They wanted bigger and bigger deficits, and yet now they want to stand back and criticize us.

Now when times are good, when the economy seems to be relatively stable and there is some surplus income, that is when most prudent businesses and governments try to pay down their debts. They try to put it toward paying off those debts so that when the tough times come, they are not in such a drastic situation, trying to scramble and find out where they can save and cut money to pay back the debt they have built up.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:35 p.m.

Spadina—Fort York Ontario

Liberal

Adam Vaughan LiberalParliamentary Secretary to the Minister of Families

Mr. Speaker, it is a great honour to stand today to support the initiatives of our government that are expressed through the bill as we implement the budget promises we made last spring, and to deliver real hope, real change and real possibilities for growth in the country for some of Canada's most vulnerable populations.

The main focus of my comments will be on the poverty reduction strategy. It is Canada's first-ever poverty reduction strategy with real targets and real tools to measure not just poverty as it exists across the country, but also as it exists in specific regions, centres, and within specific populations.

The new strategy is critical, because one of the goals of the government—and we hear the phrase repeated often—is not just growing a stronger middle class, but the support that is required to help people join that middle class, to lift themselves out of poverty by giving them the tools they need, the support they require and the opportunities they desire to make sure their lives are transformed. This is critical for the success of our country, because as we build stronger families and healthier communities, we also build more resilient children. That gives us hope for the future that the next generation will have the capacity to provide much more support for all of us as we move forward together as a country.

To set the context, we need to understand that the poverty reduction strategy, while it is a new strategy enunciated in policy, is not something we just started to begin work on. The day we took office, we began making investments right across the country to make a transformational change in people's lives. In fact, well over 600,000 Canadians have been lifted out of poverty as a direct result of the steps taken by our government. That does not include the close to 500,000 new full-time jobs that have been created, which have also created a situation allowing people to avoid poverty. I say this because the prevention of poverty is just as important as its alleviation.

The $22 billion we invested includes about $5.6 billion invested in housing. As soon as we introduced our first budget, we tripled the transfers to the provinces and doubled the investments in community organizations that are leading the fight against homelessness.

We also introduced the Canada child benefit and changed its profile. Not only is it a more generous benefit, but it is also now tax free and means-tested, which means that those with the greatest need will get the greatest support. Unlike the previous government, we do not send the cheques to millionaires and we do not tax the dollars after they have arrived in families' bank accounts. This has probably been the most profound change in social policy in this country in a generation, and probably the most important component of lifting those children I just referenced out of poverty.

Additionally, changes have been made to the CPP as we move forward to secure people's retirement funds. We have also boosted the GIS to make sure that single women, in particular, who are often alone at the end of their lives, get the boost they need to make sure that their incomes are better supported, giving them the capacity to maintain their living standards.

In addition, $7.5 billion has been invested in early learning and child care. These transfers were delivered directly to the provinces, who since the collapse of the previous national day care strategy have evolved their programs and now have a more asymmetrical situation across the country. As we invest that $7.5 billion over the next 10 years, it has already started to sustain existing spaces, provide new capital for expansion, and also provide that critical expansion of the child care system. In fact, in Ontario, 100,000 new spaces of subsidized, quality, affordable child care have been created as a direct result of the investments in partnership with the provinces.

For the first time ever, child care support has also been directed toward indigenous organizations to make sure that distinction-based programs, led, designed and delivered by indigenous communities for their children, are now part of the program. We have also made those investments, which are having an impact on families outside the mainstream programs that have existed for a generation in our country.

On top of child care, substantial investments have also been made in indigenous communities, both on and off reserve, both inside and outside of treaties, both in rural-remote regions and urban centres. These investments have led to cleaner drinking water, better housing, better education and, most importantly, better health programs being provided. In particular on Jordan's principle, in comparison with the approval and enrolment rates under the previous government, which in 10 years managed to get only one child served under Jordan's principle, we are talking about thousands and thousands being served every single year.

These are transformational changes, which have set the base for an even more aggressive push to eliminate even more of the poverty we see in our country, because we cannot sustain poverty in a country as rich as ours with a clean conscience.

As we set the new poverty standard and come across a standard way of measuring it so that we can have a common base to understand exactly whom we lifting out of poverty and how our programs are having that impact, we are often criticized for not having announced new programs simultaneously to our establishing this poverty line.

Let me assure members that there are already programs and investments forecast into the future that have not been included in the 650,000 calculation we have already used to address the people we have lifted out of poverty. For example, we have the signing of bilateral agreements. I was just in the Northwest Territories doing exactly this, signing bilateral agreements on the Canada housing benefit.

The Canada housing benefit is a new way to subsidize people's living arrangements, giving agency and choice to low-income Canadians to choose the housing that best suits their needs. Those subsidies do not kick in until next year, but will have a dramatic impact on the quality of life and alleviation of poverty among those people who are in core housing need. In fact, when one includes all the other components of the national housing strategy, we seek to support well over 650,000 Canadians, and closer to 700,000. Then we get into repairs and some of the other programs that are part of the 10-year forecast.

Those dollars are locked in and are built on top of the $5 billion we have already spent. We have also reprofiled those dollars to make them more flexible, in particular in the way in which they impact women and children, to make sure that those housing needs are addressed specifically through a national housing strategy. They were not in the previous iteration of the program. The new national housing strategy re-profiles that $40 billion and projects it into those people's lives as yet another way to alleviate poverty.

This particular bill also addresses pay equity. I have heard the members opposite complain that the bill is too big. It covers seven distinct pieces of legislation, but the piece on pay equity covers the entire breadth of federally regulated and federally administered pay programs. It is a big, complex bill because pay equity touches virtually every corner of the government, as well as significant parts of the country's private sector. That is why the bill is 850 pages long.

The bill is a comprehensive all-of-government, all-of country approach to pay equity. We are very proud to push that forward, because pay equity, again, is one of the most important tools we can put together to ensure that we reduce poverty, in particular of women but also of families and Canadians right across the country. Pay equity, giving a fair chance to everybody, in particular women, benefits us all. As women's economic situations solidify and strengthen in this country, small and medium businesses and all our social dynamics strengthen as women become more powerful. That is one of the most important reasons to support pay equity. It is good for everyone, even those who are not women.

Additionally, we have also included an indexing formula in the Canada child benefit so that it will grow over time for families to ensure that inflation does not claw back the good, strong investments we have made to eradicate child poverty. Again, those dollars are not calculated as part of our poverty reduction plan, which was in place prior to the strategy, but will have an impact afterward.

Then of course there is the national housing strategy, the $40-billion investment. I have heard some suggest that the way to do a housing program, which we have seen in the platforms of previous parties as they tried to get elected to Parliament, is to put the money upfront and just let the program drift off into the future. As someone who has done much of the consultation work with the minister and CMHC to put this strategy together, I can say that the reality is that the advice we were given by academics, housing providers, municipal partners and provincial agencies was that the best way to build a housing program was to invest heavily to start and then grow the investment as the system gets bigger over time.

In other words, if a riding were to receive a thousand units of public housing this year, a thousand next year and a thousand the year after that, its housing needs would go from 1,000 to 2,000 to 3,000. Repair needs grow with that, as do subsidy requirements, and if the program is not back-end loaded, one will not be able to build a successful system while building good, strong housing programs. That is why the program not only lasts 10 years, past two elections, but also grows over time to support a bigger, stronger, more robust capacity to house Canadians in need.

Put together, this constitutes our government's strategy for housing, poverty and improving the lives of indigenous people, women and many of the marginalized and racialized communities in this country. We have focused our programs based on data, the information we have received from stakeholders, and partnerships with indigenous, municipal, provincial and territorial governments. In total, the early investments, the project investments, the new tools to measure, study and drive data into the system to alleviate poverty are the reasons this bill is large, why are ambitions are just as big, and most importantly, why the achievements are so profound.

We are very, very proud of this particular piece of legislation. I hope that all of Canada can support it. I hope that everyone in Parliament can support it. This is delivering real change, real housing and real support to Canadians from coast to coast to coast, and I encourage all parliamentarians to support it as such.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:45 p.m.

Conservative

Larry Maguire Conservative Brandon—Souris, MB

Mr. Speaker, the hon. member tries to make the world look pretty rosy through his glasses. In fact, the simple question of when the budget will be balanced cannot be answered by anyone on that side of the House. They are embarrassed that it will be at least 27 years before that happens

We have heard a lot about the half-million jobs the Liberals say they have produced. I was only here for 23 months in the former Harper government, and we produced 1.2 million permanent jobs in Canada.

I would be in favour of a poverty reduction program as well. However, only the Liberal government, as we found out earlier this week, can spend half a million dollars on a slogan for a poverty reduction program instead of putting half a million dollars toward poverty.

Out-of-control spending of $4.5 billion for a pipeline no one wants to buy now and $10.5 million for a convicted terrorist, Mr. Khadr, are examples of why Canadians are upset today with the government. Never mind the fact that the Liberal government has not been able to build pipelines to get our natural resources, which are an economic driver for our country, in place so it can do the kind of spending it would like to do.

I would like to ask my colleague if he can tell us how soon he believes the budget will be balanced, and more so, if that is actually important to him.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:45 p.m.

Liberal

Adam Vaughan Liberal Spadina—Fort York, ON

Mr. Speaker, making sure that Canada's fiscal house is in order is critically important. That is why we have made sure that we sustain the discipline so that our debt-to-GDP ratio continues to trend in the right direction and is in fact the lowest ratio in the G7. It is one of the things that has given us the capacity to stimulate the economy and grow those jobs.

The member opposite talks about jobs created. What he did not talk about was the jobs lost as not only a global recession hit this country but the Conservative austerity measures plunged this country into a second recession, the only G7 country that managed to achieve that. As a result, the net number of jobs that came to Canada were significantly reduced. It is why we have the lowest unemployment rate in 40 years right now, which is a good anti-poverty strategy.

As it relates to the deficit the party opposite talks about, there are lots of different deficits within a complex economy. For example, there is an infrastructure deficit. The previous government left us with a $660-billion infrastructure deficit. That meant that expressways were falling down, bridges were not being built, transit was not being delivered, water was not clean, highways were broken, and housing was not being fixed or repaired. That deficit was real, because it impacted people's lives and the economy and productivity of this country. The Conservatives passed that on to this government and future generations.

The books need to be brought back into balance. However, it is not just the books as they relate to deficits and debt. It is also the social deficit, the environmental deficit and the infrastructure deficit of this country. One reason the Conservative Party was tossed out was that those other deficits were atrocious and required change. The change people are getting includes sustained and focused investments that are not only good for the people using the infrastructure and social pieces of government but are good for the country, because they grow—

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:50 p.m.

The Deputy Speaker Bruce Stanton

Questions and comments. The hon. member for Jonquière.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:50 p.m.

NDP

Karine Trudel NDP Jonquière, QC

Mr. Speaker, this massive 850-page bill contains seven different pieces of legislation, and yet the Standing Committee on Finance held only three meetings to study it.

What is more, the 36 amendments proposed by the NDP in committee were all rejected. The Liberals did not even take the time to study or debate them. They rejected them all, including those recommended by the Ontario Equal Pay Coalition, the Canadian Labour Congress or CLC, the Canadian Union of Public Employees or CUPE, Teamsters Canada and the Public Service Alliance of Canada or PSAC. All of the witnesses from these unions agreed that amendments were needed so that the bill would remedy the shortcomings in the legislation, which requires women to go to court to get equal pay for equal work.

If the Liberals were serious about pay equity, why did they not create a stand-alone bill on this subject that we could have debated in the House? That way women would not have to wait three or four years for pay equity.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:50 p.m.

Liberal

Adam Vaughan Liberal Spadina—Fort York, ON

Mr. Speaker, the NDP members often complain about two things: either we are consulting and are going too slow, or we have not consulted and are going too fast. I think we have hit the right balance here. We have put together comprehensive pay equity legislation after substantial consultation over the last three years with stakeholders, unions, private, public and governmental sources.

With regard to amendments, we have all been around committees in this place. We all see sort of a consensus emerge on how to fix a particular bill. The opposition presents one way to fix it, and the government produces a different way. The opposition's proposal might be defeated, but a very similar proposal will have the support of the government side. It is really a question of detail, sometimes, in those decisions.

As for pay equity, it is essential that we get it done in this term of Parliament. Women have waited too long. I was here in 2005 as a reporter when the NDP members rolled the dice and decided they could get a better deal under Stephen Harper than under Paul Martin. They not only collapsed the Kelowna accord, they not only collapsed an extra $2 billion for housing, they not only collapsed a national child care strategy, they collapsed comprehensive pay equity legislation as well.

Members will say that they did not roll the dice and that Canadians changed the government. Sure, Canadians changed the government, but at some point, the NDP is going to have to take responsibility for what it does, not what it aspires to do. In this case, it collapsed those pieces of legislation, and it can live with that. That is its party record.

I would also remind the party members opposite of the zero dollars they wanted to spend on housing this year or the $25 million they wanted to spend on indigenous infrastructure, a grand total of $375 million. If that is what they thought was the scope of the problem with indigenous communities across this country, they either did not care, did not know, or did not want to act.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:50 p.m.

NDP

Anne Minh-Thu Quach NDP Salaberry—Suroît, QC

Mr. Speaker, today we are talking about the Liberals, who are proposing a hefty 850-page bill. It is an omnibus bill. It is the largest bill ever introduced in the House of Commons. The omnibus bills that the Conservatives used to introduce were 75 pages long. Today we are seeing an 800% or even 900% increase with this 851-page bill. The Liberals were elected on a promise to be more transparent and more accountable.

Furthermore, we are debating this unusually large bill under a gag order. This morning, the Minister of Employment, Workforce Development and Labour was boasting about how she has already given opposition members 15 hours of debate.

According to my calculations, 15 hours of debate divided by 851 pages equals one minute and five seconds per page. Is it responsible to allocate so little time to debate a bill? I use the phrase “debate a bill” loosely, because only eight NDP MPs and five Conservative MPs spoke to this bill before today, if memory serves.

The Liberals say that they are more democratic, more transparent and more accountable, but I have my doubts. I think that everyone has reason to doubt the goodwill and good faith of the Liberals.

As my colleague from Jonquière said, this bill amends seven acts. The Liberals have never been able to tell us how many clauses and subclauses are in this mammoth bill. They themselves do not even know. They do not even know all the things they put in this bill. It is ridiculous to have to debate it under time allocation.

I will focus on just a few points in my speech because, unfortunately, nobody in the House can cover all the measures introduced in the nearly 900-page bill in just 10 minutes.

Women have been waiting 42 years for the Liberals to keep their promises on pay equity. Unions have been fighting Canada Post in court over that for 30 years. The government is yet again telling women they will have to wait. Pay equity legislation will come into force not in a matter of weeks or months, but in four years.

Our party has been a tireless advocate for this important issue. We have even proposed changes in the past. As we heard from my colleague from Jonquière, the NDP proposed 36 amendments. The Conservatives proposed amendments. The other parties proposed amendments. How many amendments did the Liberals accept? Not one single amendment was accepted, despite the fact that they reflected the demands of unions and the demands of various women's groups. Not one amendment was accepted to improve the bill, to give women a stronger voice. The Liberals did not agree to any of our suggestions.

Canada is facing some major challenges that require a bolder approach than the one the Liberals are using. The first initiatives requiring employers to determine how many people must receive more pay are a step in the right direction. However, what could possibly justify how long it will take to implement this? Is it acceptable that women continue to be underpaid for another four years under this government?

In 2018, women earn on average $12,700 less than men. If we multiply that by four, that means nearly $51,000 less for women. The government says it is proud to have introduced pay equity legislation. However, women will still have $51,000 less in their pockets, which is a lot.

If I had to summarize the government's action, I would have to say that it is nothing but half measures. The time it will take to implement pay equity is the biggest problem lurking behind the government's facade of good intentions, but it is not the only one. There is also the fact that budget implementation act, 2018, No. 2 does not require employers to apply pay equity to workers who were already under contract if changes are subsequently made to the contract following a call for tenders. Why? We do not know.

The bill also does not include any of the pay transparency measures that advocates have called for. Salaries cannot be compared when pay equity issues are being addressed. What is wrong with that picture? Will the pay equity commissioner have the resources needed to do his or her work properly? We do not know that either.

Speaking of half measures, why did the government not adopt the recommendations set out in the Bilson report, including the creation of a pay equity hearings tribunal? Lastly, the Liberals are once again professing to support equality while telling a segment of the population that is being treated unfairly to grin and bear it. I would like to remind the government that women represent 51% of the population.

The government made its choice. It chose not to make the investments needed to ensure that women receive equal pay, and chose instead to give big business, the richest people in the world, $14 billion in tax cuts. This measure was introduced last week in the Minister of Finance's fall economic statement. Did the rich and these big corporations really need that $14 billion this fall? I do not think so. They are getting help, yet many of them evade taxes or openly use tax havens to avoid paying taxes.

The same is true for web giants like Netflix, Apple and Facebook, which pay virtually nothing in taxes and then get tax breaks. However, they use our services and are quite happy to hire highly skilled workers from Quebec and Canada. The Liberals claim that our SMEs are important and that they want to support buying local, but they support the web giants that do not need to worry about all of the taxes imposed on our SMEs under Canadian law.

How much of this money will go to rural areas? We have no idea. The government is allocating billions of dollars for businesses to buy new equipment and innovate, but how can we innovate when our rural areas do not even have access to high-speed Internet or a 3G or LTE cellular network?

The Auditor General criticized the government for its lack of judgment in managing public money allocated to the connect to innovate program. Some municipalities in my riding are turned down for this program or CRTC funds for ridiculous reasons, such as the fact that there is already a home with high-speed Internet within a 25-kilometre radius. This is happening in Saint-Louis-de-Gonzague, and all the areas served by Coop CSUR in the Soulanges area are under the same restriction. Do we really want a double standard for our rural and urban areas?

On another subject, how will the poverty reduction strategy be funded? Apparently, it will be made up of existing programs without any additional money. I think the Liberals are just thumbing their noses at us. They have targets, but no plan. That seems to be a theme with this government, because it does not have a plan for the environment either. The Liberals got themselves elected in 2015 by saying, “We have a plan, we have a plan, we have a plan”. Today, there is no plan, there is no plan, there is no plan. I think I will use that in an ad.

Are they going to help the most vulnerable citizens access health care services more easily? No. There is no plan for pharmacare either, even though we know that we could save $3 billion a year according to conservative estimates. We could make a lot of investments in health care with that money.

What other measures does the bill include to drastically reduce our CO2 and methane emissions starting this year? None. Is the government planning to help rural areas go green, develop public transit, make their homes more energy efficient, or use solar and wind power? No.

Is the government going to implement restrictions to help big corporations reduce their greenhouse gas emissions? No, of course there is no plan to do that. Will the federal government finally have a costed plan for reducing its own greenhouse gas emissions? No, it has no plan for that either.

It has been pointed out that many citizen movements have been launched. In Quebec, artists, scientists, economists and citizens have signed A Pact for the Transition. Millennials have been criticized for not being more involved in all kinds of things, but yesterday, young people who realized that the government is not doing anything for the environment took action, and a youth environmental group called ENvironnement JEUnesse brought suit against the federal government for failing to take action on the environment.

I have to stop now because I am out of time, but that shows just how important the environment is to people 35 and under and how absurd it was for the government to spend $4.5 billion of taxpayers' money on a pipeline.

That move was not a plan or investment for keeping our planet healthy for current and future generations. It is shameful.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 1:05 p.m.

Spadina—Fort York Ontario

Liberal

Adam Vaughan LiberalParliamentary Secretary to the Minister of Families

Mr. Speaker, I am delighted to have the opportunity to ask my colleague opposite a question.

The purpose of my question is simple.

The member opposite complained that there was not enough investment to back up the strategy or move forward some of these critical social issues in order to achieve them. I will take housing as an example, because I have often heard the opposite side say that it all comes after the next election.

The member opposite knows, because she complained that in the first budget the money was too little to solve the problem. I agree, we needed the full $40 billion on top of the first investment. However, in our first budget, we tripled transfers to provinces and that money is building housing now, supporting housing now and renewing housing agreements now. We doubled the money that was going to homeless organizations that are fighting homelessness. We have now added an additional $40 billion on top of that, and reprofiled the money to be a little more flexible so that it can, in particular, support women and children across the country. In other words, the national housing strategy is not a 10-year, $40-billion program, but actually closer to $55 billion over 14 years, if we take into account the dollars announced before we reprofiled the money.

Would the member not agree that, from the minute we took office and the first budget we passed right through to now, we have invested well beyond $40 billion? Will the member also agree that those dollars are being spent as we speak?

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 1:05 p.m.

NDP

Anne Minh-Thu Quach NDP Salaberry—Suroît, QC

Mr. Speaker, I hear my colleague from Hamilton Mountain shouting that it is 14 years. I am not the one saying so. Many social housing organizations across Canada are saying that 90% of the investments in social housing announced by the Liberals will not come until after the next election.

Way to go. The housing crisis is happening right now.

People are also talking about other crises. I do not know if the Liberals have their heads buried in the sand or what, but every week for the last four weeks, someone has had something to say about the environment. Global warming is the number one issue. Everyone says that urgent action is needed now.

What do the Liberals propose in these 851 pages? There is nothing for the environment, a big fat zero in terms of investment and a big fat zero in terms of plans. There is nothing for decarbonization, nothing for public transit, nothing for reviewing building codes to make them more energy efficient. There is also nothing to keep fossil fuels in the ground or to promote the development of green and renewable energy sources.

Where is the Liberals' vision for addressing climate change? I do not see it here. It is nowhere to be found.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 1:05 p.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, I thank my colleague for her speech. I wholeheartedly agree with what she said about climate change.

What we need right now is not a plan to deal with a small issue because this is no longer about the environment. No, climate change has now become a critical and urgent issue. It is clearly no longer an environmental issue. It has become a threat to the security of our country and our planet.

I would like to ask the member if she has anything else to propose to effectively address this threat.