Budget Implementation Act, 2018, No. 2

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

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

Sponsor

Bill Morneau  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

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

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

Elsewhere

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

Votes

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

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 4:40 p.m.

Louis-Hébert Québec

Liberal

Joël Lightbound LiberalParliamentary Secretary to the Minister of Finance

Mr. Speaker, the member talked about the Harper record. I would like to address that topic of his speech. Is he aware that for a decade Stephen Harper had the lowest levels of growth in 69 years? He had the worst job creation since 1946. His government grew exports by a meagre 0.3%, which is the worst in post-war history. Meanwhile, he was the best for the top 1%. He managed to foster inequalities like nobody's business.

Compare and contrast that to our government over the last three years. Last year we had the strongest growth in the G7. The OECD came out with a report this summer saying that Canadian families by this time next year would be $2,000 better off than they were under the Conservative government. A half a million full-time jobs have been created in the last three years.

How can he not see that for a decade Stephen Harper was the emperor with no clothes? Our government has taken real action that has helped the middle class and helped our economy grow and prosper for everyone.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 4:40 p.m.

Conservative

Deepak Obhrai Conservative Calgary Forest Lawn, AB

Mr. Speaker, this is a new member who came to the House three years ago, and he is trying to talk about our record 10 years ago. I do not know where he was in 2008 when the whole world went into a recession. We do not live on a separate island. It was because of our economic management that we did not have to bail banks out and survived that recession. It was through the good management of the Conservative government.

As I have said, the former Conservative trade minister is the one who led the groundwork for CETA and TPP, something the current government is now signing and trying to take credit for. The Conservative government did it, and the current government is reaping is based on what Conservatives did before it went into power. We are well known for managing our economy very well.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 4:45 p.m.

Winnipeg North Manitoba

Liberal

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

Mr. Speaker, the member across the way should not try to rewrite history. We have to remember Stephen Harper inherited a surplus of billions of dollars. Even before the recession came into being, that surplus was wiped out and turned into a massive billion-dollar-plus deficit. The Conservatives have been in power for about 38% of the last 150 years, yet have accumulated 75% of Canada's debt.

Why should the Government of Canada Liberal Party listen to Conservatives, who have been absolute total failures when it comes to managing Canada's economy?

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 4:45 p.m.

Conservative

Deepak Obhrai Conservative Calgary Forest Lawn, AB

Mr. Speaker, what is he talking about? The Conservative government brought down $40 billion of deficit and had a balanced budget when it left office, not $60 billion of deficit he is talking about. It was the Conservative government.

I remember the member sitting over there spouting all these things, and none of the ideas came through. Let me remind him of one thing. He used to say that there were too many pages in the budget implementation act. I remind him that right now the Liberals' budget implementation act is 800 pages long. What is he talking about? He should look in the mirror.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 4:45 p.m.

Conservative

Robert Sopuck Conservative Dauphin—Swan River—Neepawa, MB

Mr. Speaker, to my friend from Winnipeg North, I had the honour of working in the oil sands prior to my time in Parliament, and it was just a hive of economic activity. I have heard now that the camps in the region I was working in are all closed and employment is way down.

I was on the environment committee when Bill C-69 was debated, and I thank my hon. colleague for bringing up the regulatory process. In fact, that bill is shutting down the Canadian economy right now. The resource industry is 20% of the Canadian economy and a big part of most pension funds. That is what the people across the way forget. Senior citizens, pensioners, investment funds all rely on the oil sands and the energy industry.

In the testimony in Bill C-69, Chris Bloomer from the Canadian Energy Pipeline Association said that Canada has a “toxic regulatory environment”, and that is why investment in this country is declining.

Can my friend from Calgary Forest Lawn talk about the effects of the regulatory environment on the Alberta energy industry and the ripple effect across the country?

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 4:45 p.m.

Conservative

Deepak Obhrai Conservative Calgary Forest Lawn, AB

Mr. Speaker, my colleague raises a good point. We were there only a week ago. The oil industry and even the NDP Government of Alberta have said that Bill C-69 is a disaster for the country. We are talking about the NDP government, so does that not tell the current government that its Bill C-69 is an absolute disaster for this country? Those regulations would stifle the energy sector in this country.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 4:45 p.m.

Conservative

Erin O'Toole Conservative Durham, ON

Mr. Speaker, it is always a pleasure to follow the dean of our caucus, the longest-serving member for Calgary Forest Lawn, who has been outraged on a few occasions by Liberal mismanagement of the economy. That is what I am going to spend a few minutes on in my remarks today on Bill C-86, the budget implementation act. There are a few aspects I am going to go through that should concern all Canadians, the biggest of which is the uncompetitiveness of our economy and how we are not ready for a global downturn. Many of the decisions of the government are putting us on a very precarious footing ahead of what could be uncertain times.

I have concerns related to the record debt levels under the current government and record deficits in a time of positive economic growth. I have called the Liberal track record on debt and deficits the Liberal double-double. Most Canadians are seeing the cost of their double-double going up, when they think of Tim Hortons. The Liberal double-double is deficits and debt. What is crazy about it is that it is being fuelled even with a roaring economy and despite the fact that Liberals are raising taxes countless times, making us uncompetitive. They are taking more money from Canadians and yet still cannot balance the budget.

Because this is a budget implementation bill and because my friend from Winnipeg North, the deputy House leader of the Liberal Party, is here, I want to remind him of the fact that when he says things in the House, they will come back to haunt him. I have mentioned many occasions in the previous government when, as a Liberal opposition member, he would almost howl at the moon. It is the day after Halloween. He would howl about the use of time allocation or omnibus legislation. He called them assaults on democracy several times. He has given me so much material.

I want to keep the member for Winnipeg North on his toes, so I am choosing a quote from this Parliament with respect to his comments. As a government member, he said this, on June 5, 2017, “Member after member has talked about this particular bill being an omnibus bill. Again, when I was standing up and the member made reference to some of my quotes, they were not 300-page documents, they were more like 600-page or 900-page documents, which affected laws that had nothing to do with the budget.” I thank him. This budget implementation bill is 850 pages, so it fits right in the sweet spot that he said was outrageous with the previous government. In fact, it is at the upper range of the outrageous levels he even talked about earlier in this Parliament. It is amazing. This bill is chock full of things that have nothing to do with the budget.

The Liberal member for Sackville—Preston—Chezzetcook quoted the veteran ID card that I announced as minister, the extension of the NDI 75 card and making sure that all veterans got it, not just those serving after 10 years. I was proud to make that announcement in Fredericton alongside my good friend from the Canadian Armed Forces and Royal Military College, Brian MacDonald. He was an MLA in New Brunswick and I thank him for his service in uniform and in the assembly in New Brunswick. We announced that. I was there. I can send the minister the picture of the cards we were holding up. That is in the budget implementation bill.

When the member for Winnipeg North rises to ask me a question or make a comment, which he is likely to do, statistics show he likely will, I would like him to apologize to the chamber for feigned outrage in this place over the very type of omnibus legislation he is now being tasked by Mr. Butts in the Prime Minister's Office to defend. Even at 850-plus pages, it is at the outer range of what he said was clearly unacceptable.

Beyond that, let me go back to the double-double of the Liberal Party: the debt and deficits. There is $60 billion of debt accumulated by the government in good economic times in three years. In a positive economy, where there is economic growth, that is a Canadian record. Liberals should not be proud of that record, because that debt and the deficits they are running on an annual basis are future taxes for my children.

They are spending recklessly at a time when they should be putting some away for the clouds looming on the horizon. They are not, and virtually none of it was the infrastructure money they promised.

Members will recall, in the last election, when the member for Papineau changed his fundamental economic views halfway through an election to outfox the NDP. He started the election saying that they are the party of Paul Martin and balanced budgets. Midway through, he said they were going to run deficits, but Canadians were not to worry because it would be no more than $10 billion and they would be in balance by 2019. All of that was out the window within three months. The Liberals have run deficits in the $20 billion or $20 billion-plus range every single year.

What is more egregious is they received $20 billion last year in extra revenues because the economy is strong because the Conservative Party put the economy on a footing such that when the American economy recovered, which it has, we would be booming again. Therefore, when the Liberals quote how Canada's growth was tepid during the global recession, they should go and see how our G7 allies were doing. We were the only one with a balanced budget, the only one that balanced our budget without raising taxes. We lowered taxes. Even the tax reduction of the small business rate that we had planned to 9%, the Liberals cancelled at first. Now they praise it, as they are returning it to a level we had pledged it to go to back in 2014.

It is almost comical to hear members of the Liberal Party talk about the budget, competitiveness and deficits. Their policy and the underlying philosophy change by the moment, all based on opportunity for a photograph and the hope that they can grow the economy from the heart outward. Do members remember that one? The Liberals said that the budget will balance itself and that they will grow the economy from the heart outward. They can tell that to the Alberta oil patch workers or the engineers or geologists who are out of work, or property companies that now see high vacancy rates in Alberta because the Liberals have botched the resource economy.

In fact, the Canadians they failed the most in the resource economy are our indigenous peoples. The northern gateway pipeline was a one-third owned pipeline. Our country has a commitment to make sure first nations and Inuit play a role in our economy and benefit directly, and they would have benefited with northern gateway. The Liberals cancelled that on a whim and brought in Bill C-69, which led to the cancellation of energy east, and then they were forced to buy Trans Mountain when the company was leaving Canada because we are not competitive.

In fact, Jack Mintz, the leading tax authority in Canada, warned of a “competitive tsunami” because in three years, while racking up $60 billion in debt for our children and grandchildren, the Liberals have raised taxes on everyone. They have raised personal income taxes, corporate income taxes and payroll taxes and they have introduced a carbon tax, all in the middle of good economic times. In the last year, the United States has been going in the opposite direction. This is why there is a competitive risk. It is all due to the Liberals' mismanagement of the economy.

People are not to just believe me or Jack Mintz. Douglas Porter, the chief economist of BMO, the Bank of Montreal, said, “I think Canada has a very weak competitive position. I think we're going to get crushed in the next recession”. Crushed, because they have squandered the opportunity of good times. The Liberals have put us on an uncompetitive footing so that our small businesses are going to be paying a carbon tax that the Liberals are omitting large emitters from. They are making suburban commuters in Whitby, Ajax, Pickering, Uxbridge and Peterborough pay for their schemes that the parliamentary secretary acknowledged will make businesses uncompetitive, and will not lower emissions.

The very fact that our future competitiveness is hanging in the balance should concern Canadians. It should also concern them that this budget bill does not address the underpinnings of that competitive disadvantage and of our problems getting projects like pipelines done. I would like the Liberals to stand in this House and put forward a plan to get our resources to market.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 4:55 p.m.

Parkdale—High Park Ontario

Liberal

Arif Virani LiberalParliamentary Secretary to the Minister of Justice and Attorney General of Canada

Mr. Speaker, while it is always entertaining to hear my friend opposite own up to his experience in the chamber, I just want to put out a couple of factoids for him.

He lamented our economic record compared to the Americans. We have the fastest-growing GDP in the entire G7, which includes the Americans. He lamented the ability of our policies to generate economic growth in this country. We just saw the largest single foreign investment in Canadian history, $40 billion, in the LNG facility on the west coast.

He put out a proposition to Canadians to understand the double-double. What I would say to him is actually five-forty. Five is the 500,000 jobs we have created, and 40 is the lowest jobless rate in 40 years in this country.

Perhaps he could respond to those facts for the benefit of the House.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 4:55 p.m.

Conservative

Erin O'Toole Conservative Durham, ON

Mr. Speaker, I would like to thank the parliamentary secretary for providing me with an opportunity to talk about how proper budgeting and planning for the future happened.

What was remarkable about the Conservative government was that despite the fact there was a global recession, the worst since the 1930s, Stephen Harper did not want to raise taxes. We wanted to draw investment and jobs away from the United States, which was sputtering at the time. We did that. We did not raise taxes on households, either. We lowered taxes. In fact, we made small and medium-sized businesses the core of our economy, which is why almost two-thirds of Canadians work for those people, those people who are now being taxed with the carbon tax of the Liberal government.

What is remarkable is that we balanced the budget, despite stimulus spending and the global recession of 2008-09. Stephen Harper and the Conservatives had a plan to get to balance by 2014-15, which we did.

The Liberals have changed the accounting rules to suggest that we did not balance the budget. Balancing the budget put us on a competitive footing so that when the American economy recovered, which it has in the last few years, we would benefit.

That member owes Stephen Harper a big thanks.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 5 p.m.

NDP

Murray Rankin NDP Victoria, BC

Mr. Speaker, in my friends impassioned speech, he referenced the fact that the House on Monday received a document 850 pages long, with literally thousands of clauses and subclauses dealing with budget matters, the guts of how we regulate our economy and other matters. Of course, it is not just about that. It is an omnibus bill covering much more.

It is said that a budget is the truest reflection of a government's priorities. I do not have a clue what they are.

Does the member share my concern that as parliamentarians, we cannot do our job when we are given a bill 850 pages in length on Monday and on Thursday are asked to dissect it? How can we possibly do our job as parliamentarians?

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 5 p.m.

Conservative

Erin O'Toole Conservative Durham, ON

Mr. Speaker, I would like to thank my friend, the MP for Victoria. We are the class of 2012 and were elected in the month of November back then. He has become a very good friend since.

He spoke about priorities, and it reminded me of what a former Liberal leader said in a famous leadership debate: “Do you think it's easy to make priorities?” Mr. Dion said that.

He is right. In this omnibus bill, we see the government meandering, to use a term the public safety minister has used to evade some of our questions on the Norman affair. It is meandering around the real issues. The real issue here is that we need to make sure that our small and medium-sized businesses are competitive. The carbon tax is not going to do that.

We need to make sure that seniors on fixed incomes and suburban commuters have the ability to work and have life be affordable. I do not see that in this document.

The member also pointed out the 850 pages of the omnibus bill, which the Liberals decried while in opposition but now seem to relish in government.

The good thing is that a year from now, there will be an opportunity to change. The government will see the Conservatives back on that side.

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, and other measures, be read the second time and referred to a committee, and of the amendment.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 5 p.m.

Parkdale—High Park Ontario

Liberal

Arif Virani LiberalParliamentary Secretary to the Minister of Justice and Attorney General of Canada

Mr. Speaker, I will be splitting my time with the member for Richmond Hill.

I am proud to rise today as the member of Parliament for Parkdale—High Park to speak on behalf of my constituents in support of Bill C-86, legislation that would entrench, among other things, pay equity throughout federally regulated workplaces in this country.

My constituents in Parkdale—High Park are dedicated advocates of women's rights. They include many who work hard in the federal civil service, in Crown corporations, in the transport sector, in banking, in telecommunications companies and in the Canadian Armed Forces. These are women whose request is very simple: equal pay for work of equal value. This is not a complicated ask. This is not a controversial ask. It is an ask simply for fairness. It is an ask to be treated equally.

This is what Bill C-86 would deliver: equal pay for work of equal value. It would deliver, at long last, a system that compensates women in federally regulated industries at the same level as men. My constituents in Parkdale—High Park deserve no less. The women in this country who have been fighting for equality for so long deserve no less.

Importantly, this is not a zero-sum game. When women receive the salaries they have deserved for so long, that does not come at the expense of men. To the contrary, men and women both gain when salaries are paid equally. Canada benefits when fairness applies throughout our federally regulated industries. Indeed, pay equity will spur economic growth in which all of us will share.

Let us start with where we are now. In Canada, women earn 31% less than men. Extensive research has shown that women with the same experience and the same socio-economic and demographic background earn approximately $7,200 less than their male counterparts on an annual basis. Years of inaction in the field of gender equality have only compounded the problem. Policies implemented a decade ago are now outdated and limit our potential to effectively include women in our nation's growth. Our government is committed to changing this, and that is why we are moving forward with proactive pay equity legislation through Bill C-86.

It is pretty straightforward to get a basic grasp of how flawed the current system of pay equity in Canada actually is. For example, the model we currently use is based on responding to complaints. This has proven to be ineffective for current times, because it puts the onus on workers to challenge pay discrimination. Bill C-86 would remove the complaint-based reactive system and replace it with a new regime that was proactive and that placed responsibility on employers to ensure that their compensation practices were balanced.

Second, as an additional obligation, the proposed legislation would require federally regulated public and private sector employers to establish and maintain a pay equity plan. This is because we understand the necessity of redressing the systemic gender-based discrimination experienced by employees who occupy positions in predominantly female job classes.

Bill C-86 lays out two sets of requirements, one for employers with between 10 and 99 employees and one for workplaces with 100 or more employees. According to this bill, federally regulated public and private entities would be obliged to set out specific timelines for implementation and do a compulsory review of their pay equity strategies. The bill would also permit the government to apply accountability measures to ensure that the compensation practices were consistent with the new requirements.

Further, the proposed legislation would require federally regulated employers across the banking, transport and telecommunication sectors, for example, to review their pay equity plans every five years to ensure that pay gaps had not surfaced since the plan first came into effect. If a pay gap was created, the employer would be expected to retroactively pay those female employees who were making less than they deserved.

I want to turn now to a third important component of Bill C-86. The bill would create the position of pay equity commissioner, who would have a professional team to assist in enforcing the new approaches to pay equity entrenched in the proposed legislation. This pay equity commissioner would facilitate the resolution of disputes, conduct compliance audits and investigate objections and complaints. The pay equity commissioner would have the means to impose fines should an employer be found to not be paying employees equally, and he or she would then report annually to Parliament on the administration and enforcement of this proposed legislation.

Fourth, Bill C-86 would establish pay equity standards, from the Prime Minister's office to all parliamentary workplaces throughout Canada. This is part of our whole-of-government approach to addressing gender inequality. Through this bill, for example, we would formalize our commitment to promoting gender equality and increasing the participation of women in the labour force by establishing concrete reporting requirements for analyzing budgets through a gender lens.

As the parliamentary secretary to the Minister of Justice, I am also proud of the whole-of-government work we have done under the Minister of Justice and the Department of Justice to ensure that a gender lens is applied to efforts to increase access to justice and legal reform.

Bill C-78 is a case in point. That bill, as part of our whole-of-government approach towards gender, takes specific aim at the plight of middle-class women struggling to access spousal and child support they are owed after a marital breakdown. Via Bill C-78, we would be taking steps to facilitate access to information about a former spouse's assets via the Canada Revenue Agency and their records. That would prevent spouses from hiding assets and ensure that more women were paid the spousal and child support they rightly deserve. I say “women” in this context, because we know that in this country, over $1 billion is owed in enforcement arrears to those owed spousal and child support. We also know that among the entire group in an enforcement arrears situation, 96% of the people owed money are women who are owed money by men.

I outline this example of Bill C-78 as a further example of the whole-of-government approach we have taken on this side of the chamber in terms of our approach to addressing gender inequity.

Bill C-86 is clearly an example of such legislation. It would make Status of Women a full department, called the department of women and gender equality, or WAGE.

It is well established that gender equality creates economic growth, thus entrenching the department of women and gender equality would strengthen our capacity to advance gender equality and grow the middle class through policy, programming and the support of equality-seeking organizations and community partners. The mandate of this new formalized department would further promote gender equality by breaking down barriers in respect of sex, sexual orientation, gender identity and gender expression.

Status of Women has been working on the issue of pay inequity for decades, but Bill C-86 would secure the department's place as a centre of gender expertise. It would recognize its work as a driver of economic growth and make it less vulnerable to alterations without widespread public debate and discourse. In addition, we are determined to formalize this new department to ensure that no future government ever again questions the importance of equal pay for work of equal value in Canadian society.

As I mentioned at the very outset, pay equity is not a zero-sum game. Giving to one gender is not about taking from another. To the contrary, pay inequity that has persisted for so long is actually limiting our growth. It is damaging to the development of our nation. I know this, my constituents in Parkdale—High Park know this, and our government knows this.

The “Global Gender Gap Report 2017”, from the World Economic Forum, substantiated that it will take approximately 217 years to close the economic gender gap worldwide if present trends are allowed to continue. They will not be allowed to continue, not under our government's watch.

It is essential for us to implement policies that will remove barriers that prevent women in the labour force from being fairly compensated for their work. It is critical that the Government of Canada uphold the basic principles of equality and fairness and continue to build a country and an economy that works for all genders.

From appointing the first gender-balanced federal cabinet and the first federal minister fully dedicated to gender issues, to tabling Canada's first-ever budget analyzed through a gender-based lens, to launching Canada's first-ever strategy to prevent and address gender-based violence, to an unparalleled focus on women and girls in our international development assistance, our government has demonstrated that it is committed to advancing gender equality within Canada and around the world.

Pay equity for women is long overdue. I am proud to support this bill, and I encourage every one of my colleagues in this chamber to do the very same.

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 5:10 p.m.

Conservative

Shannon Stubbs Conservative Lakeland, AB

Mr. Speaker, given my colleague's speech, I just wonder if he advocated for a gender-based analysis on the closure of the immigration office in Vegreville, which was done without consultation and without an economic impact assessment and which will, in fact, cost millions more to be relocated to Edmonton.

The reason I ask, of course, is that nearly 80% of the employees are women. In some cases, they are now having to drive to Edmonton. Others are not able to make that work. The impact on the community is wide-ranging, throughout the school system, for kids, for charitable organizations, and for multiple small businesses and farms that are owned by the women who work in those offices.

I would just like to ask if the hon. member insisted on that when he defended that decision. If he did not, how could the member be so hypocritical giving this speech today?

Budget Implementation Act, 2018, No. 2Government Orders

November 1st, 2018 / 5:15 p.m.

Liberal

Arif Virani Liberal Parkdale—High Park, ON

Mr. Speaker, the member will know that since we have taken office, all the government's decisions across every department have been subjected to a gender-based analysis and a gender equity lens. That includes decisions which relate to the Vegreville processing centre that was located in her riding.

I also emphasize for the member opposite that on a macro approach, as I mentioned, a whole-of-government approach, all our decisions, including the decisions taken at immigration, have a positive impact on women. Let me list some of them: speeding up spousal sponsorships so spouses are reunited within one year, reunifying families so parents are reunified with their children, and bringing in Yazidi refugees, including Yazidi women, who have been victimized by Daesh. We have brought in 1,200 and the previous government brought in three.