Bill C-86 (Historical)

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

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.

Second Reading

[Greg Fergus, Liberal, Hull—Aylmer, QC]

Mr. Speaker, the hon. member for Louis-Saint-Laurent is known for his bombast, but the problem is that his comments on pollution pricing mean nothing. He knows full well that our proposal is, I dare say, a Conservative principle. We want to put a price on pollution. The very concept of an economy involves putting a price on the production inputs required for our economic activities. Pollution is one such input.

Why is he against putting a price on pollution? I do not understand. I know the member to be an honourable man whose beliefs are generally consistent.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Mr. Speaker, I want to say hello to my member of Parliament. When I am in the House, the member for Hull—Aylmer is my MP. I get his email updates regularly.

I have two things to say in response to his comments.

If he truly wanted to be consistent with the price on pollution, as he calls it, or rather the Liberal carbon tax, he would make it applicable across the board, to all those who emit greenhouse gases. Instead, Canada's biggest polluters will get a 90% exemption. This is the way the Liberals operate, and, I should mention, this applies everywhere in Canada.

Our approach was always to help businesses pollute less. This is a positive and constructive approach. The Liberals punish, but we help reduce pollution. The former government's results speak for themselves and cannot be ignored: greenhouse gas emissions fell by 2.2% under the Conservative government, while Canada's GDP increased by 16.9%. This was the Conservatives' record, and Canadians are proud of it.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, I start off by congratulating my friend across the way for winning his award last night.

Having said that, I wonder if my friend could explain to me how it is that when we look at what I would classify as the bottom line of a good government, the number of jobs that have been created working with Canadians and small businesses from across virtually all regions of the country, we have been able to see well in excess of 500,000 new jobs to Canada's economy. That far exceeds anything even remotely close to what Stephen Harper ever did.

Can my friend explain why it is that Stephen Harper's government was never able to achieve the type of job growth that this government has been able to achieve in two to three years? I suggest that is one of the reasons that our plan is working. Canada's middle class is growing. It is healthier today than it ever was under Stephen Harper.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Mr. Speaker, first let me pay my respects to my colleague from Winnipeg North for having been nominated twice yesterday for a Maclean's award. I also congratulate him for the award he got a year ago.

Let us talk about the facts.

The reality is that the current government arrived in midstream when the global economy is ticking along, our main economic partner, the U.S., is going through a remarkable economic boom, and the price of a key component of our exports, in other words oil, increased rather nicely over the past few years. These are all factors that are making the Canadian economy grow and that the current government has absolutely no control over.

I would remind hon. members that when our government was in power, we had to deal with the worst economic crisis of all time, even worse than the crisis in the 1920s. Despite that, our government managed to ensure that out of the G7 countries, Canada came through the crisis the fastest, the most effectively, with the most results, and the highest job creation levels. We can be proud of our record.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Mr. Speaker, today we are debating the sixth omnibus budget bill since the last election. It is 850 pages long and includes 70 pages of additions to the Income Tax Act, yet there is not one word about tax havens. Three years, six bills and 4,500 pages of budget bills, and still not a word about tax havens.

The Liberal government's record on taxation is a monumental failure. It is worse than failure, actually, because to fail implies that one has tried. This government is not even trying. It chose to leave the door wide open to tax havens and the people who cash in because of them. It is doing so knowingly and deliberately. Despite all the nice things it says about the middle class, it has picked sides and it is siding with Bay Street bankers. I cannot overemphasize that tax havens are probably the worst financial and economic scandal of our time. When it comes to attacking this cancer, Canada's performance is among the world's worst.

Canada represents just 2% of the world's GDP. Canada's three largest banks, the Royal Bank of Canada, Scotia Bank, and the CIBC, represent 80% of the banking assets in Barbados, Grenada, and the Bahamas. Canada has just 2% of the world's GDP, but 80% of its banking assets are in these three tax havens in the Caribbean.

That is not all. In the eight other tax havens that make up the Eastern Caribbean Currency Union, Canadian banks own 60% of banking assets. Canada is not an economic superpower, but it is a superpower in tax havens.

As social democrats, we cannot accept that. There is no social justice without tax justice. There is no justice at all when the financial sector hides its money in the Caribbean and ordinary people are left paying the bill. Ottawa is allowing that to happen and at the same time is cutting transfers. Left with a shortfall, Quebec is making cuts here and there, while Quebeckers made it clear in poll after poll during the recent electoral campaign in Quebec that their priorities were health and education.

In the meantime, bankers continue to grow their billions of tax-free dollars in the sunny Caribbean. This is not illegal because the government has introduced no provisions in six budget implementation bills to prevent it. For this reason alone, everyone in the House should vote against this bill. That is what the Bloc Québécois is going to do.

However, this bill also contains some good measures. It will establish pay equity at the federal level, both for the government and businesses operating under its jurisdiction. It is about time that Ottawa moved into the 21st century, especially since John Turner's government announced this measure in 1984, or 34 years ago.

I will now speak to the issue of consumer protection in banking, which is addressed in Bill C-86. We have to acknowledge that the regime proposed by Bill C-86 is a big improvement over the mess proposed two years ago in Bill C-29. I have to say that I am proud of the work that we did to make the government reconsider and go back to the drawing board.

The Liberal government trampled over Quebec consumers to accommodate Bay Street. I remind members that Quebec is the most advanced society in North America when it comes to consumer protections. The Quebec government sets the strictest guidelines to ensure that consumers are not swindled. This was one legacy left to us by Lise Payette, who passed away last month.

Bill C-29 sought to eliminate all of the safeguards that protect ordinary people but upset rich Bay Street bankers, including measures that ban misleading advertising and hidden fees, those that prevent unilateral changes to contracts, and those that prohibit banks from increasing the maximum liability for unauthorized credit card charges to more than $50.

The Quebec act provides for a simple, free and legally binding recourse mechanism, which is the Office de la protection du consommateur. This organization defends ordinary people rather than profiteers and has the ability to initiate class action suits so that David does not have to go up against Goliath alone. Ottawa wanted to eliminate all this, usurp all the power and use it to give the banks a nice big gift of vague requirements and non-existing recourse—essentially a paradise for bankers.

I will say that Bill C-86 is not as blatant an attack as Bill C-29 was. The obligations that the government is imposing on banks are real obligations. They are not written in the conditional tense as mere suggestions, as we saw two years ago.

The government is much less explicit about its desire to stifle Quebec and set aside its provincial Consumer Protection Act. It has eliminated the infamous clause about federal paramountcy. It seems the two regimes will be able to coexist. I say “it seems” because whether that will really happen is unclear. That is why this needs to be studied in greater detail.

With regard to consumer protection, the federal act has one massive shortcoming: recourse. In Quebec, the process is simple. If someone feels their bank has misled them, they can complain to the Office de la protection du consommateur, a consumer protection bureau that will investigate and, if necessary, take the case to court. There is no cost to the complainant, and the government helps the consumer assert their rights. That is not what Bill C-86 does. The consumer will have to contact the banking ombudsman, a kind of mediator who makes recommendations but has no actual power and, moreover, is paid by the banks. Would consumers trust a judge they knew was in the bank's employ? Of course not. What we needed was a government institution, not an employee of the bankers' association.

If the bank does not listen to the recommendations of its ombudsman, what other recourse do clients have? They can take the case to federal court alone and at their own expense. Does the government really think that a client who is charged $50 in hidden fees is going to take the case to federal court alone and deal with his or her bank's army of lawyers? Consumer protection is new in federal law. It would be in the banks' interest to limit the scope of their obligations as much as possible. We can be sure that they will do everything in their power to ensure that the case law does not come down too hard on them. They will fight. Taking a case to the Supreme Court can cost up to $1 million. No one is going to subject themselves to that to recover $50 in fees. The remedies contained in Bill C-86 are ill suited for an area like consumer protection, where it is often a matter of many small amounts of money.

Also, although the bill imposes obligations on banks, it does not provide any real recourse for clients, which means that the obligations may be more theoretical than real. Here is what I expect will happen. Since clients who have been shortchanged will not have any real recourse at the federal level, they will continue to turn to the Office de la protection du consommateur du Québec. That organization will take on the case and the banks, as they have always done, will defend themselves by claiming that they are above Quebec laws. In 2014, the Supreme Court ruled in a case such as this. It found that the Quebec laws applied to banks and that they could not claim to fall exclusively under federal jurisdiction. However, the Marcotte ruling is a subtle one. One must read between the lines. Basically, what the court said was that banks are subject to Quebec law because the federal Bank Act does not include a comprehensive and exclusive consumer protection regime.

Would the court have reached the same decision if Bill C-86 had been passed? Would it have found that what we are debating here today is a comprehensive and exclusive regime? Incidentally, “exclusive” means that it excludes the application of Quebec's laws. I do not know. No one knows. That is why this legislation needs a detailed study, and not a quick glance as part of an omnibus bill. There is a real risk that Bill C-86 will eliminate the simple, free and binding recourse mechanisms we have in Quebec, and replace them with virtually pointless mechanisms. This will give the Toronto-based banks what they have always wanted: the privilege of being above the law.

To support Bill C-86 without understanding its impacts is tantamount to gambling with consumer rights in Quebec. It would be irresponsible. That is why I would like to move the following amendment to the amendment: That the amendment of the hon. member for Carleton be amended by deleting all the words after the words “other measures” and substituting the following: but that it be split and that clause 10 introducing the financial consumer protection framework be now referred to the Standing Committee on Finance before second reading.

[The Deputy Speaker, Bruce Stanton]

The hon. member for Joliette moved an amendment to the amendment, but in this case, it is out of order. Page 542 of House of Commons Procedure and Practice, third edition, states:

Each subamendment must be strictly relevant to, and not at variance with the sense of, the corresponding amendment and must seek to modify the amendment and not the original question. A subamendment cannot enlarge upon the amendment, introduce new matters foreign to it or differ in substance from it.

The time provided for questions and comments on the speech by the hon. member for Joliette will resume after question period, when we resume consideration of Government Orders.

The House resumed consideration of the motion that Bill C-86, A second 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. 2

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

Mr. Speaker, speaking for the NDP, I rise to speak about Bill C-86, the budget implementation bill. I will run through some of the things we do not like, some of the things we wish were there and some of the measures that we have some qualified support for, particularly around oil spill response. I will then speak a little more in depth about pay equity, which is a long-awaited provision. We have been eagerly looking forward to it being brought into the House for three years, actually 42 years if we count the total sweep of time since it was first committed to by Liberals, and a lot of questions have come up about the mechanics of it.

However, first, there is one big missing piece. Although the bankruptcy laws would be amended through this proposed budget implementation act, they would only protect commercial licence-holders and corporations but fail completely to protect workers' pensions with those same bankruptcy laws. Our NDP colleague, the member for Hamilton Mountain, has been working for three years on this. When there is a bankruptcy, workers' pensions, which they have paid for, should be at the front of the line. How could the government, when it is for the middle class and all that jargon, have opened up that section of the bankruptcy laws but not introduced this amendment? It is so important, whether one is a Sears worker or Stelco worker. It is a major miss and a great disappointment. In fact, some have said it is a “moral failure”.

What is missing? If this were a New Democrat budget, we would have web taxation for the giant web companies. We would end pension theft. We would have universal child care. We would have closed tax loopholes. We would have much stronger measures against tax havens. A major way to fund our social programs in this great country is to close the offshore super-rich tax loopholes. We would have sick leave in EI. We would have universal, affordable pharmacare. We would have closed the funding gap for indigenous education and access to drinking water on reserves. There would have been more help for rural communities.

Here is one proposed provision that there is a mix on. We are glad to see an increased number of weeks for parental leave when divided between working parents, but, again, and we have made this argument every budget, it would only be effective for people who can afford to live on just 33% of their salary. It is not within reach or affordable for families who are not super well off. Also, as my colleague pointed out, six in 10 workers do not have access to EI. The program is still designed in a way that does not accommodate part-time and precarious workers, the people who most need the social safety net of EI. Therefore, it is a provision that although on paper looks good, and it is a good step I guess, it would not actually get to the people who need it. Of course, it does not get at the heart of the matter, which every gender-focused government and progressive government in the world has done, and that is invest in universal affordable child care. This proposed budget would not do that.

An issue I have been working on for at least 10 years in my role as Islands Trust Council chair and during the whole three years that I have been representing here concerns oil spill response. I represent a coastal community by the ocean. It has a lot of shipping traffic, a very sensitive ecology, fast-moving currents and big tidal fluctuations. A lot of jobs are dependent on the region; people are very concerned about oil spill response. Therefore, we were glad to see in the proposed budget a mechanism for the Coast Guard to receive upfront funding from the ship-source oil pollution fund.

Members might remember this fund from when I worked with the former fisheries minister, the member for Nunavut, to have the Viki Lyne II removed from Ladysmith Harbour. After four and a half years of trying, it cost $1.2 million, which was funded through the ship-source oil pollution fund. That abandoned vessel had been towed into Ladysmith Harbour by Transport Canada. The government brought it into our riding, and it took us that long to get it out, but that fund was used to remove the Viki Lyne II on the basis that removing that abandoned vessel would prevent an oil spill.

Therefore, it is good there is some conversation in this budget about how this fund might be used in a new and modern way. However, a provision in the budget implementation act that worries me is that it creates a mechanism for the government to put taxpayer money into the fund in the event it is depleted.

We have heard a lot of speeches in the chamber about polluter pays and making corporations pay for pollution. I agree with that, but this is the exact opposite of the intention of the ship-source oil spill pollution fund.

The following is part of a letter that I wrote when I was the Islands Trust Council chair in 2013 for the Tanker Safety Panel Secretariat under Transport Canada:

...this fund cannot be viewed as a “polluter-pay” arrangement, when industry has only contributed $34.86 million between 1972-1976 and none since then. On the other hand, I am told the taxpayer has contributed more than $424 million and the fund has paid out more than $51 million for industry's annual premiums to the international compensation funds. It makes sense to us

—that is, the Islands Trust Council—

that cargo owners and pipeline owners with marine terminals who profit by risking our marine environment and the health of our communities, should contribute to this fund to avoid the burden falling on the Canadian taxpayer.

That is how it should be. Industry should be paying for this fund. We really do not want to see the government opening up a mechanism to put taxpayer funds into this, even if it is only in an emergency situation. Rather, right now we should be asking the polluters to make contributions so that in the calamitous event there is an oil spill, we are able to have the funds right there that industry has already paid for.

Most importantly, I want to talk about the pay equity provisions. Going back in history, members will remember that it was 42 years ago that Pierre Trudeau's Liberal government committed to pay equity. In 2004, again under a Liberal government, there was a task force that had tremendous buy-in from all sectors and made very strong recommendations on pay equity that were never implemented. The NDP's very first opposition day motion in this Parliament was to have the government strike a special committee to find a way to implement those 2004 recommendations.

Here we are, three years later, and we wish it had not taken this long. However, we are glad to see the pay equity legislation finally tabled here. That it is buried in an 800-page omnibus bill is very discouraging. It means we cannot dig into the details, and there are a lot of them.

I have some questions about where this does not seem to align with the 2004 pay equity task force recommendations, which this Parliament's special committee unanimously said should be implemented. Pay equity is a fundamental human right, but this act's purpose clause defines it in terms of the employer's need. This is unheard of in a human rights statute in this country and completely contrary to the 2004 task force recommendations.

There will be no legal support centre for non-union women, as recommended in the 2004 task force. There will be no standalone enforcement entity as a specialized pay equity commission and tribunal. Again, that recommendation was ignored. The definition of “employer” is left out.

We had some testimony just this morning indicating that the finance committee ran through some of these mechanisms. We are getting good advice, but, again, we wish we had more time to debate and implement it.

A question was asked about why the new federal pay equity legislation would reduce the entitlements that women employed in precarious jobs currently have with that protection under the Canadian Human Rights Act. How could it possibly be that precarious workers would have less protection in this new bill than they do right now?

The timeline is a significant problem as well. Again, we have been waiting 42 years. It took the government three years to get to this point. The new pay equity act says that women could wait more than 10 years to receive a pay equity remedy: one year to develop the regulations, three years for pay equity plan development, and eight years for compensation and remedies to paid out in the case of workplaces with fewer than 99 employees.

This is not a situation where more consultation and more research is needed. Other countries have gone way ahead of us. Women have waited far too long. We really want to accelerate the implementation of equal pay for work of equal value.

[Adam Vaughan, Liberal, Parliamentary Secretary to the Minister of Families]

Mr. Speaker, I will make two important points before I ask a question.

One point is that the NDP continually wants us to do things faster, but then to slow down once we start doing them. I am trying to reconcile that contradiction.

The second point is that in 2004, when pay equity legislation was on the table in the House and ready to be passed, as were the Kelowna accord and the proposed national day care program and an actual $2.7 billion for housing, the NDP chose to move to support a confidence motion rather than wait. The opposition controlled the timing of that. It supported the confidence motion first, rather waiting for those pieces to pass and then moving the confidence motion. The NDP have never explained to Canadians for why they gambled all of those things away. However, those things were gambled away.

My question is this. I think the member opposite raised an important issue around EI. She agreed that remodelling EI to reach more Canadians is necessary. If that happens, would she agree with what the Conservatives often say that it is a payroll tax rather than an insurance process? Would she support it even if it did have an impact on premiums?

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

Mr. Speaker, of the seven questions asked, I will say that having waited 42 years, we want to get pay equity right. As for the closure that has been invoked on debate and the very limited committee time that it looks like we are going to have, I promise that we are not trying to slow down pay equity. We want it to be implemented more quickly and to have the time in committee and in the House to be able to get the details right. This has an enormous impact on women in all sectors.

Another piece that was not accommodated in the legislation was the question of intersectionality. Indigenous and racialized and immigrant people, not just women, should be accommodated within this pay equity act, and it looks that is missing.

These are all detailed questions that we want to work on with the government to get this right. I really wish the government had not waited until the third year of its mandate to bring the legislation forward. I wish it would give us more time to have this conversation right now.

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

Mr. Speaker, as all of us in the opposition have discussed, this bill is is over 800 pages long. For those who objected to Conservative budget legislation, this is double the length of what we saw under the previous government. It is a comparison that should put those on the government side who railed against omnibus legislation utterly to shame.

I want to ask the member for her perspective on the indigenous consultation issue in the context of a budget bill that has implications for the lives of indigenous people in a number of its particularly important provisions. We have not had much time in the House to discuss those provisions, given the vastness of the bill and the limited time we have.

In this member's view, does the process conform to the requirements in UNDRIP for consultation of indigenous people on things that affect their lives?

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

Mr. Speaker, I would love to be able to answer that question. I am so proud of the work my colleague, the member of Parliament for Abitibi—Baie-James—Nunavik—Eeyou, did to bring the United Nations Declaration on the Rights of Indigenous People into legislation and have it bind future governments. Honestly, I have not even looked at that section. I have not been home since this omnibus bill was tabled. I have not heard from the Snuneymuxw, Stz'uminus, and Snaw-naw-as councils in my region.

Again, the current government is one that says that the nation-to-nation relationship is the most important. We have the ability to lock this into law. If there are good provisions, I would love to be able to support them. However, this is such a rush.

[Scott Duvall, NDP, Hamilton Mountain, ON]

Mr. Speaker, in my colleague's speech, she mentioned the bankruptcy laws, which in its budget, the government had promised it was going to have consultations on. It even campaigned that it was going to use every tool in the tool box. My colleague mentioned that the government is using this now to open up the bankruptcy laws for companies, but not for the workers' pensions. Can she tell us what her constituents told us at the town hall meeting where they expressed this concern?

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

Mr. Speaker, when I co-hosted a town hall in Ladysmith with my colleague, the member for Hamilton Mountain, we had a lot of people come out. There were former Sears employees, who really liked the mechanism that had been proposed by my colleague to put workers first in the queue in the event of bankruptcies. They recognized that these are earned pensions that they have paid into all their lives. I am sure they will be dismayed to learn that the government chose to open up the Bankruptcy and Insolvency Act, but not to protect workers' pensions.

[Maryam Monsef, Liberal, Minister of Status of Women]

Mr. Speaker, before I begin, I would like to acknowledge our presence on the traditional territory of the Algonquin peoples, who have taken care of this place for generations upon generations.

I am standing in the House to speak to, and urge my colleagues to support, Bill C-86, the budget implementation act, part 2, more affectionately known in this House as BIA 2, and to speak to the measures that help grow Canada's middle class and support those working hard to join it. I firmly believe that, when passed, these measures will help support Canadians across the country and help to grow our economy.

I also need to acknowledge the work of the feminists who have come before us, those who have worked so hard, those effective trailblazers and courageous silence-breakers who have brought us to this moment in time when we recognize that equality is a driver of economic growth. In fact, this past October, we launched Women's History Month, with the first online gallery that captures the stories of Canada's women of impact. This particular website tells the stories of women like Elsie Knott, the first woman to be chief of a first nation in Canada; Louise Fish; and young women like Faith Dickinson, along with the more well-known trailblazers, like the Right Hon. Kim Campbell. I encourage my colleagues and Canadians to google "Canada's women of impact" and read their stories. There is a teacher's guide so that we may share those stories in an effective way. Of course, Canadians are welcome to provide their nominations for other women whose stories ought to be on that website.

I mention those women, because our government is committed to continuing their legacies. Advancing gender equality is the right thing to do, and it is indeed the smart thing to do. We would benefit to the tune of $150 billion in Canada's economy over the next decade if Canada's women participated equally in our economy. We would increase our GDP by 4%, we would fill critical labour shortages, and would ensure that Canada's middle class grows, and that we stay competitive.

There are several measures in Bill C-86 to close the gender wage gap and to build on our government's existing efforts. I would like to speak broadly to five of those.

The first is the introduction of an act that would ensure there is a new and full department with a broader mandate to help Status of Women Canada evolve. It would evolve into the department for women and gender equality, WAGE in short. There is proactive pay equity legislation. We are legislating the application of a gender and diversity lens to all federal budgets moving forward. There are provisions for shared parental leave, and there is also a new benefit of five days of paid leave for survivors of family violence.

I would like to speak to the enabling legislation that would ensure that the department for women and gender equality would be able to build on the good work of the small but mighty agency that is Status of Women Canada. I will take this opportunity to thank my predecessors, as well as the team at Status of Women, who, regardless of the whims and values of the sitting governments of the day, kept the work of gender equality alive, kept tools like GBA+ sharp and applicable in Canadian contexts, and worked tirelessly, with limited resources, to help transform an agency into a full department and help meet the additional demands on their expertise with a feminist government.

The department, to be called WAGE, the department for women and gender equality, will have a wide mandate for the advancement of equality, including social, economic, and political equality with respect to sex, gender expression, gender identity, sexual orientation, rurality, indigeneity, immigration and immigrant status, as well as to ensure that we take into account the wide range of varieties that Canadians find themselves in.

The proactive pay equity legislation included in this bill, Bill C-86, is historic. It is a historic step that will ensure that women in federally regulated industries, whether in the public service or others, are paid equally for work of equal value.

In doing so, we consulted with employees and employers and advocacy organizations and worked to strike a balance between the recommendations that came from the Bilson report, as well as the hard work and the report presented to the House from the committee that worked on pay equity. Proactive pay equity legislation is part of our government's efforts to get our house in order, and to continue to lead by example, hopefully compelling other employers to do the same.

The third item I would like to speak to is gender budgeting. BIA2 includes legislation that enshrines gender budgeting in law. This will ensure that future governments apply a gender and diversity lens to their budgetary decisions. This is an important example of how our government is working to ensure that an intersectional gendered lens is applied to our decision-making, including the federal budget.

The fourth item I would like to speak to is a new benefit to advance gender equality. Our government's five-week EI “use it or lose it” parental sharing benefit which is available to two-parent families, including adoptive and same sex couples, proposes to provide greater flexibility, particularly for mothers to return to work sooner, if they so choose. It encourages the second parent to take part in the work that is caring for a newborn.

We know that it will help shape and change some of the gender norms around who provides the care. We also know that for mothers who experience postpartum depression, having that additional support in those early days will provide some relief.

The fifth item that I would like to speak to is a budget measure that is tabled by our government that will ensure that survivors of family violence receive five days of paid leave. Advocates, women's organizations and unions have told us that these five days will ensure that those who experience that violence will have some time to figure out next steps, to come up with a plan, to take a time out, whatever that may be. This is something that we heard from advocates across Canada and we listened.

Regardless of our political persuasions, we all agree that nobody should have to live in fear, in economic uncertainty, of not having access to a decent job, or being paid less for work of equal value. Everyone should have the opportunity to succeed in this great country, no matter their gender, gender identity, age, language, origin, race, abilities, rurality or other identity factors.

I encourage my hon. colleagues in this House to support this bill. The measures introduced, combined with our government's efforts, like support for women's organizations, like child care, like a national housing strategy that has a carve-out for women who are escaping violence, like the work we are doing to support women entrepreneurs and women leaders, like Daughters of the Vote, all of these measures combined will ensure greater equality in Canada, will grow Canada's middle class and will support those working hard to join it.

I hope that colleagues support Bill C-86. I am happy to answer any questions they may have.