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.

Budget Implementation Act, 2018, No. 2

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

Madam Speaker, I do not know whether this is a translation problem, but I was expecting a very simple answer. It took two minutes and I did not hear the words “I do not know”.

[The Assistant Deputy Speaker, Carol Hughes]

I think that is a matter for debate. If the hon. member for Longueuil—Saint-Hubert has a question, he may stand.

Resuming questions and comments, the hon. member for Beauport—Limoilou.

[Alupa Clarke, Conservative, Beauport—Limoilou, QC]

Madam Speaker, I am sure that the member must have skipped one of the paragraphs in his speech where he was intending to announce when the government would balance the budget. That has always been the case in Canada's history. Maybe he could check his speech once more. All of my constituents are calling non-stop every single day about when the budget will be balanced.

[Gary Anandasangaree, Liberal, Scarborough—Rouge Park, ON]

Madam Speaker, I am surprised the member has time to be in the House when he is answering so many questions from his constituents.

The paragraph I want to refer to is one that deals with the strength of the economy. Canada has one of the lowest debt-to-GDP ratios of any G7 country. We are on a sound economic footing.

I would love to talk about deficits. We can talk about the social deficits resulting from 10 years of neglect by the previous Conservative government. If one looks at the infrastructure deficit in Toronto community housing, where walls are falling apart and have not been painted for over a decade, one can see a serious deficit. We can talk about a number of issues, but when we talk about deficits it is also important to understand the effects that our infrastructure deficit has had on our country.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Madam Speaker, as their federal member of Parliament, I thank the good people of my riding of Renfrew—Nipissing—Pembroke for giving me the privilege to represent their interests. Together, we inform all Canadians about the deteriorating state of the nation's finances, as demonstrated by the economic update that was delivered by the government less than a week ago. It is even less relevant today than on the day it was delivered.

The Conservatives believe in clean air, low taxes and a healthy economy. A clean environment and well-paying jobs are only possible when taxpayers are treated with respect. This is in marked contrast to the Liberal governments, which stifle competitiveness and investment with their out-of-control deficit policies.

In Ontario, we have suffered rising small business and personal taxes. A higher minimum wage was introduced with no thought of its negative impacts, like job losses and soaring electricity rates. However, the additional environmental laws and regulations brought on by the federal Liberal government are driven by ideology rather than common sense, including the new carbon tax that will do nothing to help the environment and will make Canada a bad place to invest. Of course, entrepreneurs already figured this out years ago when they moved their capital out of Canada after the last election.

Carbon taxes raise the cost of doing business, a cost that will be shouldered on the backs of ordinary Canadians.

Thoughtful Canadians who follow my speeches in Parliament will recall when I first sounded the alarm, shortly after the 2015 election, on where the finances of our nation where headed.

Since the 2015 election, there has been an unprecedented flight of capital from Canada. After October 19, 2015, over $122 billion fled the country. For the first time, according to Statistics Canada, total Canadian investment in the United States exceeded that of the United States holdings in Canada. Scared investors fled the country. Capital that should have been available for the private sector to create jobs in Canada instead was used to create jobs in Trump's America.

Make no doubt about it, the government has been getting a free ride on the American recovery. As demonstrated by the announcement of more job losses in the automotive manufacturing sector, the free ride is over. Between Canadian investment dollars and cheap oil, the Prime Minister has been Donald Trump's best friend, to the harm of working Canadians.

In the first five months of office, the Liberals spent the Conservative budget surplus and burned through billions more. Then they proceeded to fake news their way through their bad spending and changing accounting methods to try to cover up the Conservative budget surplus. Ontario taxpayers have seen this cover-up before, when the disgraced former Ontario premier Kathleen Wynne tried to cover up how much the Toronto Liberal Party had driven Ontario into debt with her bad spending and making election bribes and promises that taxpayers could not afford.

This economic statement is costly and dogmatic, with no plan to balance the budget and the finances of Canada anytime in the future. Only a Liberal government would brag about taxes fattening coffers.

What did the finance minister do with the tax windfall the government collected from average, working, middle-class Canadians? He spent it. Rather than slowing the growth of the federal deficit in a budget that will never be balanced, as long as the member for Toronto Centre is the finance minister, he spent the additional tax revenues and more on bad spending.

The government wasted taxpayer dollars on things like a $500,000 logo and $40,000 on propaganda and Facebook ads aimed at telling children how to use a stove. Let us not forget the $65 million dollars that was spent on big greenhouse gas producing SUVs to impress G7 members as part of the Prime Minister's vanity project to buy a seat on the UN Security Council.

The Liberals broke their election promise in raising taxes on small business. By selectively raiding the employment insurance account, payroll taxes are set to rise along with the changes to CPP the government has legislated to start next year.

These additional costs are layered on top of the rise in minimum wage.

Our party left government with a $3.2 billion surplus and had the best job creation record among the G7 countries. As a result, we were able to keep taxes low for Canadian families and businesses. We reduced taxes to their lowest point in 50 years, with a typical family of four saving almost $7,000 a year.

Energy poverty is now a fact of life in my riding of Renfrew—Nipissing—Pembroke. This economic statement does nothing to help people in need. Luckily, smart voters elected Doug Ford to put a stop to corrupt electricity practices of the previous provincial party. The good he is trying to do is being undermined by the deficit-obsessed Liberal Party. The economic statement makes energy poverty worse for all Canadians, with more money for industrial wind turbines. Unlike before in only Ontario, now every time one is put up, everyone's taxes increase.

In Ontario, the price of electricity to consumers rose to the highest level in North America. This federal government action just picks a different taxpayer's pocket with the same failed policies that resulted in Ontario being the most indebted subnational government in the world.

What is the policy of the government that is driving the deficit so high and costing more job losses in the automotive manufacturing sector? The policy of the Liberal government is to intentionally wind down Canada's fossil fuel industry and with the most recent announcement from General Motors, the products which use the fuel as well.

The Prime Minister clearly stated in January of 2017, “We need to manage the transition off our dependence on fossil fuels.”

The Calgary Herald wrote:

That’s what the Liberals have been doing since being elected in 2015.

They’re managing down Alberta’s industry by imposing new regulations, killing pipeline options, withdrawing tax incentives and passing energy-hostile bills such as C-48 and C-69...

The crash in prices for Alberta oil and bitumen is a direct result of Liberal hostility to both the Northern Gateway and the Energy East pipelines....The damage to federal finances...will be huge...but it seems slow to sink in.

[Maybe that's because] for many [government] MPs and ministers, the energy crisis may even look look like a kind of victory.

Now, the Liberal Party can claim another victory with the announcement that thousands will lose their jobs at the General Motors factory in Ontario. While the policy to kill the Alberta economy is working, maybe a bit too well, it remains to be seen how the federal government will react as this policy to shut down the fossil fuel industry is felt across the country, with more job losses, particularly in the automotive manufacturing sector which is centred in central Canada.

The policy to shut down the oil and gas industry can only be followed by shutting down the industries that need fossil fuel to operate. I am waiting for proper main stream media reporting on this story.

As the rising deficit and more of the government's disastrous policies work their way into Canada's economy, the only response by the government can only be labelled as a threat to democracy in Canada.

Rather than changing direction, the response by principal secretary Gerald Butts and the rest of the Prime Minister's handlers is to double down with a propaganda campaign and an audacious plan to bribe the Canadian media in how facts are either reported or selectively omitted.

When a Conservative MP utters the words “fake news”, it launches headlines in the Globe and Mail, Global News and the Ottawa Citizen. When the member for Ottawa Centre calls a columnist she does not like “fake news”, or attacks a climate scientist or another member of Parliament, the response by too many members of the captive media is silence or some form of fake news. How many more independent voices in the media will be silenced with this bribe that is being offered? As well, how about the timing, in an election year?

Democracy depends on an independent media. The so-called “arm's-length panel” that will act like a government censor board to determine who gets direct funding is a model ripe for abuse. Censor boards will censor. That is what they are intended to do. The Liberals have stolen the media's power to set the federal election debates. Now they are turning the media into a political wedge issue on what gets reported.

The voters in my riding know a bribe when they see it and they know when a political party is trying to stack the deck in its own favour. All of this bad spending is being done with borrowed money.

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

Madam Speaker, the problem with asking a question is because there is so much inaccurate information, where does one begin. Every year, over 200,000 people die in Canada. I am surprised she did not blame that on the Government of Canada.

To focus the member on a specific question, could she explain to the House why the Conservatives, who have been in power for 38% of the time in Canada's 151 years, have accumulated 75% of the debt. They are very good at debt accumulation. When I asked the previous Conservative member this, he said “blame the Liberals”.

In case she is thinking of blaming the Liberals, let me just remind her that Stephen Harper inherited a multi-billion dollar surplus and before the recession even got under way, he converted it into a multi-billion dollar deficit. I wonder if she could explain to Canadians why they should believe the Conservatives know anything about deficit management.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Mr. Speaker, once again, I thank my most loyal fan across the way for asking the first question today.

I want to remind everyone of the Flaherty principle, which really does work. Flaherty's principle is that as we reduce taxes, overall revenues increase. That is why when we were government, we were able to lower taxes and grow jobs and the economy at the same time. In fact, we saved the average family of four $7,000, the lowest tax rate in over 50 years.

Let us not forget what has happened just this week. It is not just the oil sands the government is shutting down. Now, and we are seeing it at GM, it is beginning to shut down the industries that are related to and use fossil fuels. This is only going to compound the problem. The debt it is racking up is going to cost even more.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, I think all parliamentarians were quite shocked when the retirees and employees of Sears, after it shut down, lost significant amounts of their pensions. I know one of the deficiencies in the bill before the House, and something on which the government chose not to act, was to amend the Bankruptcy Act and other similar legislation that would ensure that workers' pensions would be protected upon bankruptcy.

Does my hon. colleague agree that workers who defer their salaries and wages and put them into company pension plans should have their money protected from creditors in the event of a bankruptcy or is she content with the status quo?

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Mr. Speaker, like the member who just spoke, we in our community have many people who were already retired and were collecting pensions from Sears. We also endured many people who suffered as a consequence of Nortel.

With Sears specifically, and with the different automotive companies that have huge debts, this has come from the provincial holiday given these companies. Therefore, the most important measure to be taken first is for the non federally-regulated pensions to be required to ensure there is always more than enough funding in the pension pool.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I heard my hon. colleague mention several times through her address that reducing fossil fuels was put forward as a bad thing. I wonder if her view is that we should increase production of fossil fuels or eliminate them so we have some chance of survival on this planet.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Mr. Speaker, as the fossil fuel industry in Canada winds down and more fossil fuels are taken out of the ground in countries outside of Canada, in places where they do not have the environmental laws we do, the emissions are actually increasing. As a total result of shutting down our oil sands, we are getting more emissions overall in other countries, because they do not sequestrate the carbon, let alone pay attention to the overall emission rules.

[Eva Nassif, Liberal, Vimy, QC]

Mr. Speaker, I am pleased to speak today on the topic of Bill C-86.

As the member for Vimy and a member of the Standing Committee on the Status of Women, I am proud of our government’s accomplishments and their impact on the lives of middle-class Canadians in my riding and across the country.

We continue to implement policies to benefit the middle class and all those who are working hard to join it. We believe in the importance of investing in all Canadians. Our economy is strong and in full expansion, and middle-class Canadians are enjoying the direct and concrete benefits of our plan’s effectiveness.

The number of employed Canadians is on the rise; the unemployment rate has reached its lowest level in 40 years; we have seen the strongest economic growth of all the G7 nations; salaries are increasing; consumer and business confidence is on the rise; and businesses are investing because they believe in our plan, which promotes sustainable growth.

A year from now in 2019, a typical middle-class family of four will be taking home $2,000 more. Thanks to the Canada child benefit, 300,000 children will be lifted out of poverty. Nine out of 10 families receive this benefit, which, in my riding alone, has helped more than 19,000 children.

Thanks to programs such as the Canada child benefit and the national housing strategy, we have improved Canadians’ living conditions. Last week marked the strategy's first anniversary. Since we took power, we have also improved seniors’ benefits by bringing the eligibility for old age security back down to age 65 and by enhancing the guaranteed income supplement. We have done all this by reducing taxes for the less fortunate and increasing them for the wealthy.

We have also invested in sustainable infrastructures and created numerous jobs. I am pleased to inform the House that, in the past 12 months alone, more than $55 million was invested in the electrification of public transit in my riding of Vimy. I am proud that the City of Laval is showing leadership in the area of sustainable infrastructure.

Moreover, to address the affordable housing crisis across Canada, we invested to help our most vulnerable families. In my riding, we invested in the first stage of the Val-Martin affordable housing project, and people are thrilled. There is still a long waiting list as 1,000 people still await affordable housing. This is a first step, and we are moving in the right direction.

Our constituents are happy because they are seeing the positive impact of our investments on their lives. Yes, we have a lot of debt, but we are investing in Canadians’ lives. Affordable housing is an issue of interest to all Canadians. There is still a lot to be done, but we are happy to continue to work to solve this problem that has been around for decades.

As a woman and a member of the Standing Committee on the Status of Women, I would like to point out that, like each year, the 16 days of activism against gender-based violence will take place from November 25 to December 10. This is an opportunity for every one of us to reaffirm our commitment to preventing and eliminating the violence suffered by almost half of all girls and young women in Canada.

These 16 days are essential because we honour the work done in the past to fight gender-based violence. We also see the importance of contributing to the fight so that we can make a difference by working together.

Our government has also advanced the cause of pay equity, since ensuring equal pay for equal work is the smart thing to do. It is a key initiative our government has taken to honour its commitment to ensuring gender equality.

We have passed legislation according to the results of gender-based analysis to make sure that every Canadian has a fair and equal change to succeed. It is not simply the right thing to do, it is the smart thing to do. Canada’s future prosperity depends on it. Our government placed gender equality at the heart of its decision-making process in order to support women, reduce the gender wage gap, promote the participation of women in the workplace, and continue to build a country and an economy that works for everyone.

We have created a whole new department: the department of women and gender equality. Our government understands that gender equality is key to economic growth. The new Status of Women department will improve our ability to advance the cause of gender equality, and grow the middle class through policies, programs and the funding of community organizations dedicated to ensuring equality.

Thanks to these laws and policies, the government will be better able to capitalize on the momentum of international movements such as #MeToo, Time’s Up and women’s marches to make major changes for the benefit of Canadians of all gender identities. Our government launched the women entrepreneurship strategy and gave it $2 billion in funding.

We also opened the country up to foreign markets and new clienteles. This is the spirit in which our government negotiated the trade agreements that will give Canadians privileged access to 1.5 billion new overseas customers.

We have made a lot of progress in three years, but there is still a lot to do. I am proud to be part of this government. I am still very proud of representing the people of Vimy, and I promise them that I will do my best, with our government, to help all of the poor and grow the economy in my riding and across the country.

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

Mr. Speaker, my colleague listed a number of accomplishments that the current government has achieved, but she did not list the great increase in the deficit and the increase in interest costs. At one point, she said that investor confidence is growing.

It certainly is not growing in my area. I can tell her of a number of small and medium-sized enterprises that are losing confidence. Not only are they unable to expand like they had hoped to do, they are laying off people. This is going on across the country.

The Bank of Canada actually confirms this because the new Canadian investments into the U.S. have gone up by two-thirds, by 66%, over the last three years. U.S. investment into Canada decreased by 52%.

I would like it if my colleague could give us some actual concrete evidence for her comments that investor confidence is growing, because that is not my experience.

[Eva Nassif, Liberal, Vimy, QC]

Mr. Speaker, I thank my hon. colleague opposite for his question. Yes, in fact, we do have a lot of debt but we have invested in economic growth and infrastructure and we have created over 600,000 jobs. I can assure my colleague opposite that a lot of jobs have been created in my riding of Vimy. We have also boosted investor confidence. Investor confidence has increased since we were elected. We are leading the G7. We are working hard to continue on this positive course.

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

Mr. Speaker, this has been a question asked regularly and I wonder if the member has any thoughts on it. Since we have limited time, I will state it simply. When will the budget balance itself?