Bill C-86 (Historical)

Budget Implementation Act, 2018, No. 2

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

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

Budget Implementation Act, 2018, No. 2

[Ted Falk, Conservative, Provencher, MB]

Madam Speaker, it is a pleasure to rise in the House today to speak to Bill C-86, the budget implementation act no. 2.

The Liberal government is attempting to ram a budget through the House that paints a rosy picture of our national finances. It insists on spending massive amounts of money and promising to increase taxes through its new tax on everything, the carbon tax. In fact, the leader of the official opposition hit the nail on the head when he said of this Liberal government, “Never has a government spent so much and achieved so little.” It is true.

Despite the promises of the Minister of Finance and the Prime Minister, all is not well in Canada, certainly not for the people of Oshawa. For over 100 years, Oshawa and General Motors have had a partnership. Now the Oshawa plant is going to be shut down. This is a tremendous blow to the people of Oshawa and Canadian manufacturing in general.

Before going any further, let me express my concern for the people of Oshawa. I cannot imagine what far too many Canadians in Oshawa are experiencing today. My sincere condolences go out to all of those who are going to be negatively affected and will lose their jobs. This is terrible news, and it comes just before Christmas.

The GM plant is important not only to families in Oshawa but to families across Ontario and Canada. The Oshawa plant is closing, and the Liberals have nothing to show for it. Their high taxes and lack of regulatory clarity are forcing businesses all over the country to stop investing or to just plain leave Canada. They have no way of backstopping anything except through more debt. It is important to run a surplus during good economic times so that when the bad times come, there is money to be spent, and as they say, money to be invested. Running deficits during good times means there will be less when the bad times come.

For the people in Oshawa, times are hard. The only way the Liberal government can help them is through more debt. This is debt that Oshawans and all Canadians will have to pay through increased taxes down the road. All Canadians will have to pay through increased taxes down the road, as will the folks in Oshawa, but if there are no jobs, there will be no extra money to pay extra taxes. This is precisely the situation the Liberal government is creating in Canada.

The U.S. administration has cut taxes for businesses, and this has caused many businesses to choose to relocate to the United States. The finance minister and the Liberal government declined to match any of those tax cuts. Consequently, many businesses are choosing to invest in the United States as opposed to Canada. The tax cuts and the corresponding lack of action by the Liberal government may have played a role in the closing of the Oshawa plant by General Motors.

Manufacturing across Canada is concerned, particularly about the issue of tariffs on aluminum and steel. Despite significant concessions to the U.S. in the recent NAFTA negotiations, now called the USMCA, the Liberal government was not able to get the Trump administration to lift the tariffs on steel and aluminum. This is costing manufacturers and industry dearly.

In my riding, my constituent Marilyn N. is a small business owner. She imports aluminum-based products from the United States, and because of the tariffs and the retaliatory tariffs we have put on, she has indicated to me that if these tariffs are not lifted, she may be forced to lay off workers, as her costs are not sustainable in the long term.

Many business owners across Canada can relate to her story, but Liberal failures are not limited to manufacturing. The Prime Minister and his Liberal government have failed with our natural resources as well. Their failures have resulted in the loss of thousands of jobs and over $100 billion of investment in our energy sector.

Energy east, Pacific Northwest LNG, northern gateway, Aurora LNG, and Grassy Point LNG are all examples of the government's inability to deliver on developing and getting to market our natural resources. The Trans Mountain crisis has made things even worse. The taxpayer is on the hook for $4.5 billion for a pipeline that may never be built. Under the previous Conservative government, four pipelines were built. This included the Enbridge Alberta Clipper, the Trans Canada Keystone, the Kinder Morgan Anchor Loop, and the Enbridge Line 9B reversal.

As soon as the Liberals took office, the Prime Minister and his government started their reckless spending and arbitrary regulatory changes. This caused business investment to plummet and confidence in Canada to decline. Even the Montreal Economic Institute said, “People are giving up on Canada as a safe place to invest in natural resources...It’s seen as a very hostile environment now.”

It is quite clear that the Liberal government has failed in encouraging foreign investment in Canada. Our country has so much to offer and the Liberal government is throwing away potential investment opportunities because of its failures. In fact, though the economy has grown, very little has been the government's doing. Growth was driven by oil and gas markets, a strong housing market and consumer spending. Consumers were able to spend because interest rates were low. The Liberal government has had very little to do with any of that. It has not helped and in many cases it has hindered growth areas in our country.

When it comes to oil, the Liberal government, under the current Prime Minister, has been an absolute failure. When he formed government in 2015, he did so with three large pipelines ready to be delivered. Two of those pipelines abandoned Canada due to the regulatory environment created by the Liberal government. The third was bought by Canadian citizens, through no choice of their own, for $4.5 billion for a pipeline that was worth just over a billion dollars and a potential of building and constructing a new pipeline for another $3.5 billion. That was basically goodwill, and now that goodwill does not look like it is going to be worth very much.

The Prime Minister has failed to realize that oil and gas is not an unfortunate part of Canada; it is a vital component of Canada and our economy. It is important to the people of Alberta and all Canadians who depend upon government services, which are possible because of oil royalties.

When the Prime Minister said that he wanted to phase out the oil sands, I think he meant it. The cost to Canadians has yet to be fully accounted for, but already it is hurting our country. His reckless commitment to dismantling the oil and gas sector, an essential of Canada's economy, will undoubtedly lower our growth potential.

In addition, his inability to build a pipeline to tidewater means that our oil is largely captive to the American market, where it is bought for considerably less than it would be worth on the world market. Less money in the provincial and federal coffers means that without spending cuts, the governments must either raise taxes or borrow more money.

If governments borrow more money, interest rates will go up. Higher interest rates will affect consumer confidence. Less consumer confidence means less willingness to undertake large expenses. Housing will suddenly be less sought after as Canadians are forced to pay more interest. They will borrow less money. Suddenly, the three main drivers of growth in Canada, oil and gas, housing and consumer spending, are no longer the powerful drivers that they once were.

Due to high levels of government debt and historically low interest rates, the federal government will have very few tools left to deal with any upcoming crisis. This is not a healthy place for a government to be in. Nor is it good place for our country. The next crisis to befall Canada is going to be dangerous.

The Liberal government loves to talk about the debt-to-GDP ratio. That sounds good. However, it is only one tool and if we consider the implications, it is not reassuring at all. In fact, it could be bad and very bad for Canada. This way of accounting is only positive if the economy grows. It is based on economic growth. If the government continues to spend money, but the economy starts to slow, then we are in a bad situation and that debt-to GDP ratio quickly gets skewed.

Debt consists of principal, which is the amount borrowed, and interest, which is the amount paid to service the debt. If interest rates go up, we are paying more for the money that we have borrowed. Debt is a reasonable option if it allows for long-term gain. However, the Liberal government has borrowed money with reckless abandon and very little of it has gone to any kinds of projects with long-term sustainable benefit to Canadians.

Spending on infrastructure has not materialized. Of the $180 billion that the government committed to infrastructure spending, only 6% or just under $10 billion of that has actually been spent and invested in Canada. That would be a real investment, spending money on infrastructure, but the government has not allowed it to happen.

[Bob Bratina, Liberal, Hamilton East—Stoney Creek, ON]

Madam Speaker, I am always pleased to hear the interventions of my friend for Provencher, Manitoba. However, I want to point out the things that are happening. The member has mentioned several critical issues that are unfortunate. We hope to make better and make whole the economies of the hard-hit areas of our country, and he gave some good specifics.

In the particular, in the case of my city, the Conference Board of Canada cites 32,000 net new jobs in 2017. The unemployment rate is at 4.9% and the economic growth has been at 3.6%.

Among the facilities that have been enhanced by government investment is the Parrish & Heimbecker flour mill. Parrish & Heimbecker from Manitoba saw advantages in shipping grain through the port of Hamilton, created a facility, and our government was pleased to provide several million dollars to allow for the creation of a flour mill. Of course, rail cars are being made in Hamilton at that facility, which will enable grain to move in his province and so on.

Would my friend not admit that even though there are serious issues that we have to approach, some good has been created, such as the 32,000 net new jobs in Hamilton?

[Ted Falk, Conservative, Provencher, MB]

Madam Speaker, I am delighted that Hamilton has experienced 32,000 net new jobs. However, the Parliamentary Budget Office paints a different picture. This year, so far the only growth in real jobs has been in government jobs. In the private sector, there actually has been a shrinkage in real job growth. That is not very encouraging news.

I recognize that part of the Liberal ideology is bigger government, more control, more taxes and more spending. However, I am delighted that the member from Hamilton has seen good things happen in his constituency.

The House resumed from November 26 consideration of Bill C-86, A second Act to implement certain provisions of the budget tabled in Parliament on February 27, 2018 and other measures, as reported (with amendments) from the committee, and of the motions in Group No. 1.

Report stage

[Nick Whalen, Liberal, St. John's East, NL]

Mr. Speaker, it is exciting to be here today to support the budget implementation bill and specifically the legislation establishing the college of patent agents and trademark agents. This is at subdivision D of division 7 of part 4 of the budget implementation bill.

This is an important element of the government's IP strategy. Taken as a whole, that strategy will ensure that Canada's intellectual property regime is modern and robust, and that it supports Canadian innovations in the 21st century.

Patent and trademark agents are a key component of the innovation ecosystem, as they help inventors to secure exclusive IP rights. I was the only Newfoundlander who was a patent agent at the time of my election. Although I am not practising in that area of law now, I have some pretty good information regarding the need for a college of patent agents and a college of trademark agents.

Given the rising importance of IP in the innovation economy and the central role of patent and trademark agents, it is time to have a professional oversight body responsible for maintaining the high standards that are expected of trusted advisers. As a bonus, this would address long-standing gaps in the current framework for regulatory oversight, which previously lacked clarity and transparency and was without a binding code of professional conduct. Given the importance of the profession, good safeguards here are needed to ensure that agents do the jobs they do well and have the trust of their clients and of Canadians more broadly.

While there is no evidence suggesting a large problem with agent conduct, the need for modernization is imperative now that communications with IP agents are protected by statutory privilege in the same way as solicitor-client advice. This is an extraordinary right that requires ethical guidelines to prevent its abuse.

The college of patent agents and trademark agents act would establish an independent regulator, specifically a college, for the professional oversight of IP agents in the public interest. The college would administer a licensing system to ensure that only qualified professionals are authorized to provide agent services. As an independent regulator, it would also be responsible for enforcing a code of professional conduct to ensure that IP agents continue to deliver high-quality advice.

The college would also be responsible for implementing requirements for continuing professional development to ensure that agents stay informed of the ever-evolving IP practice landscape. Ultimately, these measures would raise the bar of IP professional services in Canada.

The college would have an investigations committee to receive complaints and conduct investigations into whether or not a licensee has committed professional misconduct or been incompetent. A separate disciplinary committee would have the authority to impose disciplinary measures if it is decided that a licensee has in fact committed professional misconduct or been incompetent.

Finally, this bill also creates new offences for claiming to be a patent agent or a trademark agent, or for the unauthorized representation of another person before the Canadian patent office or the office of the registrar of trademarks. These offences are intended to serve an important consumer protection function to ensure that innovators are receiving representation from qualified, licensed agents.

I would like now to speak about the important features that have been built into the legislation to ensure that the regulation is undertaken within the public interest and with the public interest as the priority.

Careful consideration was given to ensuring that the legislation supported the public interest in a competitive marketplace of well-qualified and professional IP agents. For example, the college would be governed by a board of directors that includes public interest representatives appointed by the minister, and patent and trademark agent representatives elected by members of the college itself.

Further measures directed toward safeguarding the public interest include providing the minister with the authority to review the board's activities and, if necessary, to direct the board to undertake any action to ensure regulation in the public interest. Another measure requires the board to report to Parliament annually on its activities.

The framework for the legislation takes into account comments from stakeholders over the course of several public consultations. During these consultations, risks were identified relating to the fact that many IP agents are also lawyers. Concerns were expressed about dual regulation, that is that lawyers and agents would be subject to two potentially conflicting regulatory schemes.

In recognition of this potential for overlap, the legislation would ensure minimal regulatory conflict for lawyers who may also be agents. In addition, where appropriate, the college's investigations committee would be authorized to refer a complaint to another body that has the duty to regulate another profession, for example a law society for a lawyer.

In fact, in my experience as someone who has been regulated as an engineer, regulated as a lawyer in three different jurisdictions, and regulated as a patent agent and a trademark agent in two different countries, I appreciate the concern that might exist about overrepresentation or over-regulation, as well as the concern that might be raised by conflicts in ethical obligations.

Whereas a lawyer, for instance, may have an ethical obligation to maintain strict solicitor-client privilege, an engineer is in fact required to put the public interest ahead of that interest. Therefore, it is important to note that there can be proper and reasonable conflicts in the ethics associated with different professions.

Patent agents are there to obtain the most protection possible for their clients' inventions or the broadest scope of trademark protection for their brands. Sometimes that might conflict with another ethical obligation that might apply in a different fashion to a lawyer or an engineer.

Balancing these is important and means making sure that when patent agents wear their patent agent hats, they are regulated as patent agents, and when they wear their lawyer hats they are regulated as lawyers, and when they wear their engineer hats they are regulated as engineers. This legislation allows for that nuanced differentiation.

We also heard during consultations that specific care must be taken to safeguard privileged information. Significant measures must be in place to ensure the appropriate handling and safeguarding of privileged information and to strictly control access to such information. To do so, the legislation draws upon safeguards and processes similar to those used by provincial law societies in order to safeguard privileged information in the investigation of college members.

More specifically, privileged information can only be used for the purpose of regulating agents. Disclosing privileged information to the college will not be considered a waiver of the privilege, and the privilege will be preserved for other purposes. Those purposes could be some type of lawsuit before the courts on solicitor-client privilege or the maintenance of the confidentiality of an inventor's right to an invention for having filed before first being disclosed to the public, for instance.

The act places strict obligations on employees and directors of the college, preventing them from disclosing privileged information, and further clarifies that the government cannot use its oversight authority to access privileged information. There is a strict process of court oversight to access and contest access to solicitor-client privileged information. These were of importance to the patent bar in the development of the legislation.

From my perspective, as someone who went through the process of becoming a patent agent, I can attest to the fact that an additional element is brought to bear on a regulated profession. Sometimes professions can be regulated in such a manner as to encourage more people to join the profession, and sometimes they can be regulated in a fashion that prevents new people from entering the profession.

The fact that the United States has 100 times as many patent agents or practitioners as Canada does with only 10 times the population demonstrates that our regime for licensing patent agents has become too restrictive.

The creation of an independent college will have the extra function of aligning the college's role of growing the profession with the public's interest in having more patent agents available to help inventors spur the creation of these assets. Patent and IP assets simply do not exist if they are not filed and registered, and if professional advice is not brought to bear.

It is not like in copyright, where people create a new work and then own the rights to that work. In the patent and trademark space, it is the professionals who assist the creators or the brand makers in protecting, acquiring and preserving those rights, both at home and abroad. If that work is not done, there is no asset to protect. Canada needs probably 10 times more patent and trademark agents than it currently has in order to have the same level of asset creation as the United States. This is important in the 21st-century economy.

In conclusion, the college of patent agents and trademark agents will be responsive to stakeholder input and follow international best practices in professional regulation. Care was taken with the legislation to establish well-structured bodies to ensure proper independent oversight, with an option for the government to intervene only if necessary. The checks and balances included in the legislation will ensure regulation in the public interest.

As a whole, I would encourage all members to support the budget implementation act, including this subdivision of part 7.

[Celina Caesar-Chavannes, Liberal, Whitby, ON]

Madam Speaker, in his support of Bill C-86, my hon. colleague talked about IP and IP strategy. As a member of the industry committee, I can attest that it really is important to understand that a comprehensive IP strategy helps businesses not just to protect their IP on the home front, but to grow and succeed and then be able to export to international markets.

I am wondering if my hon. colleague can also talk about what he is hearing from small businesses in his riding about this strategy, its comprehensiveness, the fact that it would include education and the ability to grow and prosper, and how it has impacted businesses in his riding.

[Nick Whalen, Liberal, St. John's East, NL]

Madam Speaker, I really appreciate the work of the industry committee members. They have a lot of very interesting files. With my professional background, I think I would probably bring too much bias to that committee. I do read their reports with a lot of great interest. It is nice to see what a fresh perspective brings to those topics that are close to my heart.

I know that in Newfoundland and Labrador, when I was the only patent agent there, it was very difficult for me. I had to travel to get the support I needed to maintain my professional credentials. I lacked the network of local folks to bounce ideas off of. It really is important to have a true bar.

The creation of an independent college would help grow the profession and result in more patent agents in small communities, like Newfoundland and Labrador, and the markets in New Brunswick and Nova Scotia, so that they could have the proper coordinated, long-term professional development that would benefit their clients. There are plenty of innovative companies in Newfoundland and Labrador that seek professional services from Boston, California, Montreal or Alberta, depending on their industries.

The creation of a college would allow better local representation for these folks and growth of our industry.

[Mark Warawa, Conservative, Langley—Aldergrove, BC]

Madam Speaker, I listened intently to my colleague, and I appreciated his comments.

However, the member is defending a budget that is indefensible. Canadians did vote for a change in 2015. However, what the government promised and what it is delivering are very different. The government promised to balance the budget. Now the budget before us is not even close to being balanced.

Could the member tell us when the government will balance the budget?

[Nick Whalen, Liberal, St. John's East, NL]

Madam Speaker, that is really quite an ideological question, a “direction of the country” question that goes to what the appropriate fiscal anchors are that should guide our development, borrowing and spending practices.

As someone who has knocked on just over 10,000 doors and got to speak to just over 4,000 folks at the door, I know that my commitment to them was that we would focus on growing the economy for the middle class, and that if that meant deficit spending to do it, we would be guided by the principle that we would grow the economy more than the deficit, so that in the long term the deficit would shrink as a percentage of the economy. That is exactly what we have done.

The proof is in the pudding. Canada's growth has led the G7 for much of our mandate. I think we are now in second place. The debt-to-GDP ratio has fallen to the lowest among the G7. That allows us the economic resilience to put in place new programs to help the folks in Oshawa respond to crises, to create supercluster funds and to do things that will create the jobs of the future.

With respect to the portion of the bill that I am speaking to, I will say that it is cost-neutral for the government. The college will pay for itself through its fees to its members.

[Mel Arnold, Conservative, North Okanagan—Shuswap, BC]

Madam Speaker, when the member was knocking on those doors, did he mention that the government would pass on a debt to every many, woman and child in his riding of at least $600 per year? If he even mentioned that to them, what sort of reaction might the member have gotten?

It is abysmal that the government keeps passing on this massive debt to future generations who will have to pay it back.

[Nick Whalen, Liberal, St. John's East, NL]

Madam Speaker, when I speak to people at the door about the complicated issue of the debt-to-GDP ratio, I say to them, “Listen, yes, you are going to have debt that will be $600 more, but the growth in the economy will mean there will be closer to $2,000 more on average in the pockets of working families.” They understand that.

We have to spend money to make money. Canadians think we are growing the economy, and they appreciate that.

[Celina Caesar-Chavannes, Liberal, Whitby, ON]

Madam Speaker, it gives me great pleasure to talk to Bill C-86. Since we came into government, we have really focused on the middle class and those working hard to join it. This legislation would help us to continue along that trajectory, continue to make Canada one of the fastest growing economies in the G7 and continue to help ensure that Canadian companies are able to create good middle-class jobs. In fact, they have been able to create over half a million jobs. Our government created the conditions with investments to ensure that these companies and Canadians would be able to grow and prosper. It has done so through our trade and other investments in education and skills training, and will continue along that path.

However, I want to focus my comments today on three specific points that I will ground within the sustainable development goals. Earlier this year, I was with the Minister of Families, Children and Social Development in New York to present our voluntary statement to the United Nations on the sustainable development goals. Canada has a role to play to ensure that we reach those 169 targets and 17 goals by 2030. We are well on track to do that. We have been doing it from day one.

I am going to focus on particular components of the sustainable development goals emphasized through this budget. The first is goal 5, one that is really important to my heart. It has to do with gender and ensuring that we have gender equality in our country. As we are in the midst of 16 days of activism against gender-based violence, I want to ensure that my actions matter. Speaking to this particular legislation, Bill C-86, allows me to do that.

What we have in front of us are a number of different initiatives that would help to ensure we have gender equality in Canada. Our government has legislated gender budgeting, made Status of Women a full department and enacted proactive pay equity legislation.

With regard to Status of Women becoming a full department, the future department of women and gender equality, it is nice to have the word “wage” included in the title when we are introducing proactive pay legislation. When we think about the fact that indigenous women, women of colour, women with disabilities, religious individuals, people with different sexual orientations and women who are too old or too young face disproportionate negative impacts and barriers in their workplaces and communities, it is important that we be sensitive. When we are enacting legislation, it is also important to look at how our legislation impacts individuals differently. By legislating gender budgeting and ensuring increased participation of women, especially the ones who are most vulnerable, we are working toward supporting women and girls and reducing the gender wage gap. We are making sure that our country is prosperous for everyone.

The current gap of around 20¢ per dollar of earnings between what men and women make grows proportionately bigger when we think about some of these vulnerable communities or look at intersectionality. When there are different intersecting identities, we see that the gap between men and women gets larger, so ensuring that our country is prosperous for everyone is really important.

As I mentioned, having a full department dedicated to the status of women, the women and gender equality department, is really important. It will have an expanded mandate for gender equality, including sexual orientation, gender identity and expression, and for the promotion of a greater understanding of gender diversity, often through what is known as a gender-based analysis plus.

We need to ensure that we have the capacity to leverage movements like #MeToo and Time’s Up and ensure that every woman in this country feels that she has a place and is valued and respected. The initiatives we have taken so far with regard to gender will ensure that this happens.

Continuing with my theme of the sustainable development goals, goal 8 speaks to decent work and economic growth; goal 9, industry, innovation and infrastructure; goal 10, reducing inequalities; goal 11, sustainable cities and communities; and goal 16, peace, justice and strong institutions. To tie up all of those goals is really the work that we are doing with stakeholders in the charitable sector.

I worked in research before I came into politics. I owned a research management company, but I worked with organizations like Neurological Health Charities Canada, the Alzheimer Society of Canada, Parkinson Canada, Epilepsy Durham and many organizations in my riding like Sunrise Youth Group in Whitby or the Charles H. Best Diabetes Centre, of which Kenadie, a sixth grade student, is a very strong champion. She came to see me in Ottawa last year.

These charitable organizations are the foundation on which our middle class rests. They are the ones that do a lot of hard work to ensure that we are able to continue to function as a society. For example, the Sunrise Youth Group supports adult individuals with developmental handicaps so that their parents can go to work. This is what our charitable sector does and it really is a strong part of our society.

In strengthening that role of our charitable sector, we are ensuring that charities are able to do the work they want to do on behalf of Canadians. We are removing the limits to their political activities, allowing charities to participate fully in policy development. They could provide feedback on legislation and legislative proposals. We are providing a permanent advisory committee on the charitable sector.

The charitable sector is one of the sectors that contribute to our economy. It can generate up to $2 billion in economic activity and create as many as 100,000 jobs. The charitable sector is growing, is vital, and innovative. It does a lot with very little and we need to support it. Our government will be providing supports and resources of up to $750 million over the next 10 years to support and establish a social finance fund. When we look to our charitable organizations to provide support for our families, we need to support them. That is what we are doing here in this budget implementation act.

The last things I want to speak to are goal 1, no poverty; goal 2, zero hunger; and goal 3, good health and well-being. When we look at reducing poverty and ensuring that people have the capacity to live a full life and contribute to our economy, we need to look holistically at the social determinants of health to ensure that we help create the conditions that allow Canadians to live their best lives possible. With our poverty reduction strategy, programs like the Canada child benefit, our national housing strategy, enhancing seniors benefits, the Canada workers benefit, we have lifted 650,000 Canadians out of poverty, including 300,000 children.

We are developing our first national poverty reduction strategy and establishing for the first time ever an official poverty alliance. We are looking holistically at ensuring that Canadians of all stripes will be able to have a good quality of life. Since October 2015, we have hit the ground running to ensure that this happens in a comprehensive, holistic way. Not only are we going to be able to achieve our sustainable development goals and the agenda 2030, but we are doing it here in Canada. We are taking leadership by ensuring that everyone has a fair chance to succeed.

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

Madam Speaker, it is disturbing to see how far the Liberals have led us into increasing debt, despite the fact that they promised in their election campaign that by now we would be coming back to balance. That is far from the truth. In fact, the cost of interest alone in 2017-18 was $23.9 billion. By 2021-22, the cost will be $39 billion. That is a $15-billion increase in interest costs alone. That has nothing to do with paying down the debt. It will cost an extra $15 billion to pay the interest on our debt, which is rising every year because of increased deficits as a result of the government's spending. This is in spite of the fact that it promised a very small deficit and promised to bring us back to balance by now.

My question is simple. Could that extra $15 billion we are spending on interest not be put to better use to provide, for example, great palliative care for Canadians?

[Celina Caesar-Chavannes, Liberal, Whitby, ON]

Madam Speaker, we are keeping our debt-to-GDP ratio low. The investments we have made to date have ensured that we have created the conditions in this country that have allowed our small to medium-sized businesses to create over 500,000 jobs. We have invested in technology and skills training. We have invested in public transit in Durham region, the largest investment in public transit we have ever seen, which allows us to reduce our carbon footprint as well.

We have made investments to ensure that Canadians have a bit more in their pockets. Over the next year, an average family of four will have $2,000 more in its pocket to spend on the things they find are necessary.

We are reducing poverty, we are investing in communities and we are helping to grow a strong Canada, and that is what Canadians find important.

[Georgina Jolibois, NDP, Desnethé—Missinippi—Churchill River, SK]

Madam Speaker, before I ask my question, I want to clarify some points. One of the recent reports that came out in Canada about poverty indicated that the top two areas in Canada affected by child poverty are northern Saskatchewan and northern Manitoba. My experiences in northern Saskatchewan have shown that all levels of government, whether the federal Conservatives or Liberals or governments at the provincial level, are way out of touch. They ignore and neglect northern Saskatchewan and possibly northern Manitoba as well.

I am curious as to what this poverty reduction plan looks like. I want to believe that it is suitable for northern Saskatchewan and northern Manitoba. Can the government clearly explain? I do not want to hear about first nation involvement. I want to hear specifically about ridings like mine, Desnethé—Missinippi—Churchill River, with a specific population of northerners that are first nations, Métis, farming communities and rural municipalities. Can the Liberal government clarify this point?