Budget Implementation Act, 2018, No. 2

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

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

Sponsor

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

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

Elsewhere

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

Votes

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

December 5th, 2018 / 4:35 p.m.


See context

Director, Copyright Policy, Creative Marketplace and Innovation Branch, Department of Canadian Heritage

Kahlil Cappuccino

Thanks very much, Mark.

Mr. Chair and distinguished members of the committee, as the ministers of ISED and PCH committed to in their first letter to your committee in December 2017, and pursuant to public consultations and previous studies by committees of both the House of Commons and the Senate, the government has taken comprehensive action to modernize the board.

First, budget 2018 increased by 30% the annual financial resources of the board. Second, the government appointed a new vice-chair and CEO of the board, Madame Nathalie Théberge, who is sitting with us, as well as appointing three additional members of the board. With these new appointments and additional funding, the Copyright Board is on its way and ready for modernization. Third, Bill C-86, which is now before the Senate, proposes legislative changes to the Copyright Act to modernize the framework in which the board operates.

As numerous witnesses stated to you as part of your review, more efficient and timely decision-making processes at the Copyright Board are a priority. The proposed amendments in the bill seek to revitalize the board and empower it to play its instrumental role in today's modern economy.

It would do this by introducing more predictability and clarity in board processes, codifying the board's mandate, setting clear criteria for decision-making and empowering case management. To tackle the delays directly, the proposed amendments would require tariff proposals to be filed earlier and be effective longer, and a proposed new regulatory power would enable the Governor-in-Council to establish decision-making deadlines. Finally, the proposed amendments would allow direct negotiation between more collectives and users, ensuring that the board is only adjudicating matters when needed, thus freeing resources for more complex and contested proceedings.

These reforms would eliminate barriers for businesses and services wishing to innovate or enter the Canadian market. They would also better position Canadian creators and cultural entrepreneurs to succeed so they can continue producing high-quality Canadian content. Overall, these measures would ensure that the board has the tools it needs to facilitate collective management and support a creative marketplace that is both fair and functional.

However, the changes do not address broad concerns that have been raised around the applicability and enforceability of board-set rates. Certain stakeholders asked that the government clarify when users have to pay rates set by the board and provide stronger tools for enforcement when those rates are not paid. The ministers felt that these important issues were more appropriately considered as part of the review of the Copyright Act, with the benefit of the in-depth analysis being undertaken by this committee and the Standing Committee on Canadian Heritage.

We look forward to recommendations that will help foster sustainability across all creative sectors, including the educational publishing industry.

At this point, I'd like to hand things back over to Mark to conclude.

Nathalie Théberge Vice-Chair and Chief Executive Officer, Copyright Board

Mr. Chair and distinguished members of this committee, thank you.

My name is Nathalie Théberge. I am the new vice-chair and CEO of the Copyright Board, as of October. I will be speaking today as CEO.

As you said, Gilles McDougall, secretary general, and Sylvain Audet, general counsel, both from the board, are with me today. I would like to thank the committee for giving us the opportunity to speak on the parliamentary review of the Copyright Act.

First, I'd like to provide a reminder: The Copyright Board of Canada is an independent, quasi-judicial tribunal created under the Copyright Act. The board's role is to establish the royalties to be paid for the use of works and other subject matters protected by copyright, when the administration of these rights is entrusted to a collective society. The direct value of royalties set by the board's decisions is estimated to almost $500 million annually.

The board sits at the higher end of the independent spectrum for administrative tribunals. Its mandate is to set fair and equitable tariffs in an unbiased, impartial and unimpeded fashion. This is not an easy task, especially as information required to support the work of the board is not easily acquired. The board is on the onset of a major reform following the introduction of changes to the Copyright Act imbedded in the Budget Implementation Act, Bill C-86.

If I may, I would like to state how committed the board is towards implementing the reform proposals. Of course, the impact of these proposals will take some time to assess as there will be a transition period during which all players involved, including the board and the parties that appear before it, will need to adapt and change their practices, behaviours and, to some extent, their organizational culture.

This transition period is to be expected due to the ambitious scope of the reform proposals, but we believe that the entire Canadian intellectual property ecosystem will benefit from a more efficient pricing system under the guidance of the Copyright Board.

However, reforming the board is not a panacea for all woes affecting the ability for creators to get fairly compensated for their work and for users to have access to these works. As such, the board welcomes the opportunity to put forward a few pistes de réflexion to the committee, hoping its experience in the actual operationalization of many provisions of the Copyright Act may be useful.

Today, we would like to suggest three themes the committee may want to consider. We were very careful as to choose only issues of direct implication for the board's mandate and operations, as defined in the Copyright Act and amended through the Budget Implementation Act 2018, No. 2, currently under review by Parliament.

The first theme relates to transparency. Committee members who are familiar with the board know that our ability to render decisions that are fair and equitable and that reflect the public interest depends on our ability to understand and consider the broader marketplace. For that, you need information, including on whether other agreements covering similar uses of copyrighted material exist in a given market. This is a little bit like real estate, where to properly establish the selling price of a property you need to consider comparables, namely, the value of similar properties in the same neighbourhood, the rate of the market, etc.

Currently, filing of agreements with the board is not mandatory, which often leaves the board having to rely on an incomplete portrait of the market. We believe that the Copyright Act should provide a meaningful incentive for parties to file agreements between collectives and users. Some may argue that the board already has the authority to request from parties that they provide the board with relevant agreements. We think that legislative guidance would avoid the board having to exert pressure via subpoena to gain access to those agreements, which in turn can contribute to delays that we all want to avoid.

More broadly, we encourage the committee to consider in its report how to increase the overall transparency within the copyright ecosystem in Canada. As part of the reform, we will do our part at the board by adding to our own processes steps and practices that incentivize better sharing of information among parties and facilitate the participation of the public.

The second theme relates to access. We encourage the committee to include in its report a recommendation for a complete scrub of the act, since the last time it was done was in 1985. Successive reforms and modifications have resulted in a legislative text that is not only hard to understand but that at times appears to bear some incoherencies. In a world where creators increasingly have to manage their rights themselves, it is important that our legislative tools be written in a manner that facilitates comprehension. As such, we offer as an inspiration the Australian copyright act.

We further encourage the committee to consider modifying the publication requirements in the orphan works regime. Currently, where the owner of copyright cannot be located, the board cannot issue licences in relation to certain works, such as works that are solely available online or deposited in a museum. We believe the act should be amended to permit the board to issue a licence in those cases, with safeguards.

Finally, our third theme relates to efficiency. The board reform as proposed in Bill C-86 would go a long way in making the tariff-setting process in Canada more efficient and predictable and ultimately a better use of public resources. I believe the committee has heard the same message from various experts.

We recommend two other possible means to achieve these objectives.

First, we encourage the committee to consider changing the act to grant the board the power to issue interim decisions on its motion. Currently, the board can only do so on application from a party. This power would provide the board with an additional tool to influence the pace and dynamics of tariff-setting proceedings.

Second, we encourage the committee to explore whether the act should be modified to clarify the binding nature of board tariffs and licences. This proposal follows a relatively recent decision of the Supreme Court of Canada where the court made a statement to the effect that when the board sets royalties within licences in individual cases—the arbitration regime—such licences did not have a mandatory binding effect against users in certain circumstances. Some commentators have also expressed different views on how that statement would be applicable to the tariff context before the board.

We are aware that this is a controversial issue, but would still invite you to study it if only because parties and the board spend time, efforts and resources in seeking a decision from the board.

On that happy note, we congratulate each member of the committee for the work accomplished thus far, and thank you for your attention.

Budget Implementation Act, 2018, No. 2Government Orders

December 3rd, 2018 / 7:10 p.m.


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The Speaker Geoff Regan

I declare the remaining elements of the bill carried.

The House has agreed to the entirety of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures at third reading stage.

(Bill read the third time and passed)

Budget Implementation Act, 2018, No. 2Government Orders

December 3rd, 2018 / 6:55 p.m.


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The Speaker Geoff Regan

Pursuant to order made on Tuesday, November 27, the House will now proceed to the taking of the deferred recorded division on the motion at third reading stage of Bill C-86.

The question is on the amendment. Shall I dispense?

The House resumed from November 27 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 third time and passed, and of the amendment.

Mackenzie Valley Resource Management ActGovernment Orders

December 3rd, 2018 / 3:40 p.m.


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Conservative

Jim Eglinski Conservative Yellowhead, AB

Madam Speaker, the hon. member and I have had many discussions. I do not think we are too far off on our feelings of the north. I have a fondness for the people of the north and I do not believe that we should be plundering any part of northern Canada for its wealth. It should be left to the people of the north to look after themselves and be the stewards of the land

I object to this bill because its overtones are so similar to Bill C-48, Bill C-86 and others. As well, it takes the control away from the people. That is where my concerns come in. It takes the control away from the people and local government officials like the hon. member's brother who is a very well-known and respected person in the Northwest Territories. I feel they are a bit concerned about this bill, as I am.

Mackenzie Valley Resource Management ActGovernment Orders

December 3rd, 2018 / 3:30 p.m.


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Conservative

Jim Eglinski Conservative Yellowhead, AB

Madam Speaker, here we are again with another anti-energy policy from the current Liberal government that is driving energy investment out of Canada, costing Canadian workers their jobs and significantly increasing poverty in certain regions, especially in the north.

I am speaking to Bill C-88, because I am concerned that the changes it would make would politicize oil and gas extraction by expanding the powers of this Liberal government to block economic development. It would take local control and environmental stewardship away from the aboriginal people of the region and would inhibit local, territorial governments from doing what is best for the people of the area. I am speaking of the Mackenzie Delta.

I see that my friend across the way is smiling, because he is very proud of the region he has grown up in.

Bill C-88 is not just another Liberal anti-energy bill, like Bill C-48, Bill C-69 and Bill C-86. These bills could block all future pipelines, giving the government the authority to unilaterally shut down natural resource development. It is now systematically going after the Northwest Territories, as it has done with our western provinces.

Only a few people get to visit the Mackenzie Delta or travel the pristine waters of the Mackenzie River. Those who do find it breathtaking, due to its vast biological and ecological formations.

When Sir Alexander Mackenzie travelled the Mackenzie River in 1789, he was astonished by its sparse population and the pristine beauty of the region. As members may know, the river was named after him. That is for a few of my Liberal colleagues across the way, except for the member for the Northwest Territories.

I count myself fortunate, no, I should say I count myself blessed and lucky, to have been able to travel from the start of the Peace and Athabasca rivers, which are the headwaters of the Mackenzie River, and I have followed it as it flows, leading to the Beaufort Sea in the north. This pristine area, rich in ecological wealth, covers an area of just under two million square kilometres, and its drainage basin encompasses one-fifth of Canada. This is the second-largest river in North America, next to the Mississippi River.

Oil and gas have been part of this region since 1921. There are also mines of uranium, gold, diamond, lead and zinc in the area. During World War II, a pipeline was built from Norman Wells to Whitehorse, in Yukon. It carried crucial petroleum products needed during World War II and helped Canada and the United States build the Alaska Highway, which significantly helped Canada during the war. It is called the Canol Pipeline, and it still exists today.

At a very young age, I personally met and was inspired by one of Canada's great leaders. That was Mr. John Diefenbaker, whose statue sits at the rear of this building. He was a leader of great wisdom and vision who led our country to where it is today. I remember he once said, “I see a new Canada—a Canada of the North.” This is what he thought of and envisioned. He spoke of giving the people of northern Canada the right to develop their resources, protect their environment and maintain and develop strong economies in the region. Diefenbaker saw the need for the people of the north to do this, not the Government of Canada.

One of Canada's leading novelists of the same era, Hugh MacLennan, a Liberal visionary, noted at the time that by 2061, the Mackenzie Delta would have three million people living along the banks and shores of the river and that people's pockets would be full of money from the wealth of the region. He said there would be at least two universities built in the Mackenzie Delta area.

That Liberal's prediction was wrong, and the actions of my Liberal friends across the way from me are also wrong.

There are roughly 10,000 people living along the Mackenzie River Delta, in places like Wrigley, Tulita, Norman Wells, Fort Good Hope, Fort McPherson, Inuvik, Aklavik and Tuktoyaktuk. I have been to those communities and I know the people.

There are 68 aboriginal groups that also live in this region. I have had the pleasure and honour of gathering and socializing with them to discuss their issues. We used to gather at the Petitot River. I have been there a number of times. To me, they are the real stewards of the land, not organizations like CPAWS, the David Suzuki Foundation or others that have the ear of the environment minister. The aboriginal groups are the real Canadian environmentalists and the real stewards of the land.

Recently, Merven Gruben, the mayor of Tuktoyaktuk, testified at the committee on indigenous and northern affairs. He said that the Liberal government should be helping northern communities. Instead, it shut down the offshore gasification and put a moratorium right across the whole Arctic without even consulting communities. He also said that people in his town like to work for a living and are not used to getting social assistance. Now, all they are getting are the few tourists coming up the new highway. That makes for small change compared to when they worked in the oil and gas sector.

They are the people of the Mackenzie River Delta. Our Conservative government gave them the power to manage their resources in a true, healthy and respectful manner that only the people of the region can do. This was done through Bill C-15, which created the Northwest Territories Devolution Act of 2014.

Our former Conservative government viewed the north as a key driver of economic activity for decades to come, but this Liberal government is arbitrarily creating huge swaths of protected land with little or no consultation with aboriginal communities, while other Arctic nations are exploring possibilities within their respective areas.

Bill C-88 reveals a full rejection of calls from elected territorial leaders for the increased control of their natural resources. It consists of two parts. Part A would amend the Mackenzie Valley Resource Management Act of 1998. Part B would amend the Canada Petroleum Resources Act to allow the Governor in Council to issue orders. That scares me.

What about the provisions that were introduced by the former Conservative government within Bill C-15's Northwest Territories Devolution Act? Bill C-88 would reverse these changes, even though Liberal MPs voted in favour of Bill C-15 when it was debated in Parliament, including the Prime Minister.

Now the Liberals want to reverse the former government's proposal to consolidate the four land and water boards in the Mackenzie Valley into one. I believe this is so that they can take control. The creation of a single board was a key recommendation that would address “complexity and capacity issues by making more efficient use of expenditures and administrative resources” and would allow for administrative practices to be “understandable and consistent”. When Bill C-15 was debated in the House of Commons in 2013 and 2014, the restructured board was included in the final version of the modern land claim agreements.

The Liberals would further politicize the regulatory and environmental processes for resource extraction in Canada's north by giving cabinet sweeping powers to stop projects on the basis of “national interest”. This reveals a rejection of calls from northerners for increased control of their national resources.

The Liberal government should leave the people of northern Canada with their resources and let them be their own environmentalists and stewards of the land. They know it the best.

Consumer ProtectionOral Questions

December 3rd, 2018 / 2:55 p.m.


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Bloc

Mario Beaulieu Bloc La Pointe-de-l'Île, QC

Mr. Speaker, Quebec is the only jurisdiction that adequately protects consumers from banks. Under Bill C-86, the Liberals seem to be protecting the banks by preventing any recourse to Quebec's Office de la protection du consommateur.

The National Assembly unanimously calls on the federal government to clarify in Bill C-86 that Quebec's legislation will continue to apply to banks.

Will the 40 federal Liberal MPs protect Quebec consumers or will they choose Bay Street and the big banks?

Consumer ProtectionOral Questions

November 30th, 2018 / noon


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Louis-Hébert Québec

Liberal

Joël Lightbound LiberalParliamentary Secretary to the Minister of Finance

Mr. Speaker, as I just mentioned, we have always been committed to offering Canadian consumers as much protection as possible when it comes to their financial services, while still respecting provincial jurisdictions. That continues to be the case with Bill C-86.

Consumer ProtectionOral Questions

November 30th, 2018 / noon


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Bloc

Marilène Gill Bloc Manicouagan, QC

Mr. Speaker, this is the second time that this banker's government has tried to deprive Quebec consumers of their rights.

With Bill C-86, there is a real possibility that Quebec's Office de la protection du consommateur will no longer have any recourse against banks. That means that people who are getting gouged will no longer have any free recourse and will have to pay to take their bank and its army of lawyers to court.

When will the 40 Liberal MPs from Quebec start defending their constituents instead of being the banks' lackeys?

Consumer ProtectionOral Questions

November 30th, 2018 / 11:55 a.m.


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Bloc

Monique Pauzé Bloc Repentigny, QC

Mr. Speaker, the National Assembly just unanimously adopted a motion condemning the provisions in Bill C-86 that provide weaker consumer credit protection than Quebec laws and will cause confusion about which rules apply to certain insurance contracts.

The motion calls on the government to ensure that provisions in Bill C-86 governing these two sectors will not apply where Quebec standards are already in place.

Will the government amend Bill C-86 to clarify that Quebec laws will continue to apply in full?

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 5 p.m.


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Conservative

Cheryl Gallant Conservative Renfrew—Nipissing—Pembroke, ON

Mr. Speaker, as the federal member of Parliament for Renfrew—Nipissing—Pembroke, I welcome this opportunity to inform Canadians about the deteriorating state of the nation's finances. It is clear, as evidenced by the fall economic update, just how out of touch the member for Toronto Centre as finance minister is with the concerns of ordinary, hard-working, middle-class Canadians.

A Conservative government believes 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. The out-of-control deficit policies of the Liberal Party stifle competitiveness and job-creating investment. A sustainable environment and a sustainable economy are only possible with a sustainable government.

The deficit budgets of this government are not sustainable. The government is not sustainable. We cannot spend more than we take in. This Liberal obsession with running huge budgetary deficits will only end badly. They always do.

The last time Canadians heard rhetoric about modest deficits was when the prime minister's father was on his throne. There is a reason Trudeau senior is known as the king of deficits. He started the cycle of spending more than what is collected in taxes. It was only supposed to be a temporary measure. He was the one who brought in the hated Liberal NEP, the national energy policy. Just like his father, the current Prime Minister was greeted by protesters when he visited Alberta.

The NEP was the first policy to load a carbon tax onto fossil fuels. Energy in the form of hydroelectricity was exempted from the NEP taxes that were collected to pay for Liberal bad spending. Today, the headline in the Financial Post reads “...we're facing a made-in-Canada energy crisis”. There is no doubt about it. This crisis was planned.

There is hope. At the end of senior Trudeau's reign, in the process of kicking the Liberals out of office, Canadians elected the most Conservatives to Parliament since Confederation in 1867. That led to the new Conservative government of the day starting the hard work of bringing the nation's finances back into order by balancing the current account deficit left from the previous government. That still was not enough.

Jean Chrétien, who at least understood that we could not spend more than we have forever, took the drastic measures known as the “decade of darkness”. In the process of slashing 60,000 public service jobs, programs and services were cut. Cuts in health care transfers meant hospital wait times increased. People in my riding were forced to go without a family doctor, thanks to the Liberal budget cuts. The budget was eventually balanced by the Liberals on the backs of ordinary Canadians. Deficit budgets do have consequences.

While the Conservatives took the political heat to bring in a consumption tax, the Chrétien Liberals campaigned against it before embracing it. During the Conservative government of Stephen Harper, they voted against our lowering the GST; the Liberals liked it so much as a revenue source. A carbon tax is a consumption tax.

My riding of Renfrew—Nipissing—Pembroke is home to Garrison Petawawa, which is now Canada's largest army base. Before I was elected as the local member of Parliament, the future of the base was uncertain. That changed when the Conservatives were in government. Rather than balance the budget on the backs of our soldiers, Conservatives took a balanced approach, lowering taxes to increase revenues, putting more people back to work while using any surpluses to pay down the deficit and stabilize services to Canadians. The decade of darkness of the Liberal budget cuts was particularly harsh for women and men in uniform. Running continual budget deficits does have consequences.

The decision by the Liberal Party to play politics with military procurement is similar to what is happening today with the naval frigate replacement and the jet replacement programs, which would result in the unnecessary loss of lives in Afghanistan a decade later. The decision by the Liberal Party to cancel the EH101 helicopter to replace the then 40-year-plus-old Sea King helicopter meant Canadians would be forced to travel on roads in Afghanistan mined with improvised explosive devices. Those same terrorist bomb-makers, like Omar Khadr, are rewarded with multi-million dollar payoffs while our veterans, who were injured by those bombs, wait for justice.

Without strategic lifts, soldiers died on the bomb-laden roads. It was not until the Harper Conservative government purchased new Chinook helicopters that the death count dropped. I pray for the soldiers and their families that the decision to put off buying the proper equipment for our soldiers will not result in the unnecessary loss of life again.

We owe it to our soldier to provide them with the proper equipment when we ask them to go into harm's way. Budget deficits have consequences.

The bad news contained in Bill C-86 and the budget deficit increases contained in that legislation is the Liberal policy to load today's economy with future tax increases that will burden our children.

The debt burden for our children will be our burden first, as the federal carbon tax starts in a little more than a month. Every Canadian who understands anything about running a household knows that good times do not last. Our parents and our grandparents saved during the good times because they had lived through bad times.

Why does the federal government insist on huge deficits, spending dollars we do not have, by borrowing billions of dollars? The answer is “carb-a-geddon”.

Canadians may have heard of Apocalypse Now or the term Armageddon and understand what is meant by carb-a-geddon. Carb-a-geddon, the meltdown of the Canadian economy through carbon taxation, will reveal itself as the federal government begins to collect these new consumption taxes. These taxes are set to increase automatically every year.

The finance minister was forced to admit, after he delivered his economic statement, the budget would never be balanced as long as his party held power. Secret documents prepared by the finance department confirmed the truth about carbon taxes. They hurt Canadian families. The Liberals refusal to release these documents to the Canadian public confirms they have something to hide. Carb-a-geddon is real.

The worst part about carbon taxes is that taxing carbon dioxide in Canada does not help the environment whatsoever. The environment is a cloak the government wears for every bad policy. Adopting carbon taxes in Canada actually raises global carbon emissions by offshoring economic activity from relatively environmentally-friendly places like Canada to places with lax environmental laws.

Data from the World Bank reveals that China and other developing countries produce far more carbon dioxide than do western nations. China is currently building hundreds of new coal-fired plants, which will ensure its C02 emissions continue to rise for decades to come.

Every factory like GM, pushed out of Canada because of the Liberal carbon tax, will actually increase global emissions dramatically, and this will continue to be the case for decades to come.

The lntergovernmental Panel on Climate Change (IPCC) has declared that for a carbon tax to be effective in saving the climate from its apocalyptic warming, the carbon tax would have to start at least at $135 a tonne and rise to $5,500 a tonne by 2030. The Liberals' carbon tax currently starts at $20 and rises to $50. Projections now show that Liberal commitments in 2016's Paris climate agreement will not be met unless the carbon tax is at least $200 a tonne to start.

Under the Liberals' carbon tax pricing scheme, additional taxes will be charged to fuel up our autos or heat our homes, with a charge on non-renewable fuels for fuel producers, distributors and importers. Large industrial emitters of pollution, big business, are exempted from the new carbon tax scheme.

A carbon price of 4.42¢ per litre will apply to gasoline as of April 2019 and will rise by 11¢ per litre by April 2022. While the Liberal Party intends to provide an election bribe in some form of rebate, the rebates represent about 30% of the carbon tax the federal government will collect, as far as we know today.

Pretending this new carbon tax grab has anything to do with "fighting climate change" is just a gimmick to raise taxes.

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 third time and passed, and of the amendment.

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 4:50 p.m.


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Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, I thank my colleague very much for doing some research for me. I, too, did some research beforehand to see if there were any. I even searched the electronic document using the French words “agriculture” and “agroalimentaire” and their corresponding English terms “agriculture” and “agri-food”, but to no avail. However, technology can sometimes let us down, and so, for the benefit of my constituents, I wanted to check to see if this important document, Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, mentioned agriculture and agri-food.

I take my NDP colleague at her word. I do not do so often, but, today, I will. I agree with her. There is absolutely nothing about agriculture and agri-food in this document. That is what I was implying with my silence. It is sometimes worth taking a moment of silence to think and reflect. I would have liked the government opposite to do just that before introducing a 854-page bill, which does not mention or have any measures for agriculture and the agri-food sector.

I will obviously be voting against this bill and I promise to do so in silence.

Budget Implementation Act, 2018, No. 2Government Orders

November 29th, 2018 / 4:40 p.m.


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Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, I will be sharing my time with the member for Renfrew—Nipissing—Pembroke. I look forward to her speech.

Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, is 854 pages long. Today we are being asked to examine it despite the fact that, several years prior to the Liberals sitting on that side of the House, they repeatedly denounced omnibus bills and budget bills that were so long. It is not easy for parliamentarians to study a bill such as this.

I am the official opposition critic for agriculture and agri-food, so I want to look at what is in Bill C-86 for agriculture and agri-food.