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

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 11:50 a.m.

Liberal

Celina Caesar-Chavannes Liberal Whitby, ON

Madam Speaker, I thank my hon. colleague for focusing her concerns on areas in her riding. We have been taking a whole-of-government approach from the very beginning, which ensures that we are listening to stakeholders to ensure that when we introduce Canada's first national poverty reduction strategy, we do it in a way that would eliminate poverty. We are establishing an official poverty line for the first time ever in the history of this country.

We know the devastating effects of poverty. We want to reduce poverty and ensure that we are giving her constituents and constituents in my riding the best possible chance. I was at a school the other day for the breakfast program.

We want to ensure that we are listening to everyone. We want to make sure that our poverty reduction strategy has a real impact on Canadians across the country.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 11:50 a.m.

NDP

Matthew Dubé NDP Beloeil—Chambly, QC

Madam Speaker, the good news is that despite this “man cold”, as my wife calls it, my voice seems to be back. I hope it will stick around for the next 15 minutes so that I can speak to budget implementation act, 2018, No. 2. Before getting to what is in the bill or, more to the point, what is not, which might make up the bulk of my comments, I want to talk about the process.

After all, this is an omnibus bill, like the ones we saw so often under the previous government. The current government actually campaigned on a pledge to end the use of omnibus bills. The Liberals not only broke that promise, but they are constantly introducing omnibus bills. They use them not just for budgets, but also for other areas like public safety, transport and justice. We keep getting bills that are harder and harder for parliamentarians to study in any meaningful way.

I may be mistaken about the numbers, which we can check, but the mere fact that we can evoke this type of image says a lot. The Conservatives' first omnibus bill, Bill C-38, which was introduced in 2012 in the last Parliament, showed how abusive this practice had become. The bill was the nadir of this anti-democratic tendency, seeking to undermine the employment insurance program and eliminate the already inadequate environmental assessment process. The bill was hundreds of pages long.

If we were to combine the Conservatives' first omnibus bill from 2012 with the Liberals' first omnibus bill—not the one we are currently debating—we would have a bill the same size as the one before us, which is over 800 pages long.

That is completely ridiculous. I gather some of us are burning the midnight oil in our offices to read the bill. Some members say that they are sick of looking at the four walls of their offices, so they go read it at home. However, let us be honest. The idea that we have the time to consult our constituents, speak to stakeholders on the various files that critics are responsible for, read up on subjects of interest to MPs, and also read Bill C-86, including all the acts it amends, is simply unrealistic.

Some might say that this violates our parliamentary privileges. I am not looking to start a debate on privilege, but I do think it is important to point out how hard this makes it for us to do our jobs.

Even setting aside the size of the bill, the weight of it, and the rule against using props during debate in the House, I would advise my constituents not to print it out. It would be a waste of paper. The thing is massive.

On top of introducing a massive bill, the government has moved time allocation. Not only is it limiting debate in the wider sense by introducing a bill that is extremely difficult to study and therefore to debate, but it is also limiting the time for debate. In 10 or 20 minutes, the normal length of a speech in the House, it is impossible to address every issue. Plus, the government wants to limit the time for debate. This means that we, as the second opposition party, get to put up about eight speakers at most, out of about 40 or so MPs.

Some might say that the budget process, and therefore the budget implementation bill, are among the most important duties of the federal government. The fact that less than one-third of the members of a recognized opposition party get a chance to speak is a real problem.

Let us put the procedural issue aside, since we could talk for ages about this broken promise. I also want to talk about what is missing from this bill and, by extension, from the Liberals' budget. Unfortunately, the Liberals have neglected these elements too often over these past few years, since they came to power.

I would like to focus on a few aspects in particular. First, the government is still not charging web giants sales tax, even though that is a relatively simple matter. It is a matter of fairness and common sense.

When I was in my riding during the last parliamentary recess, I spoke with a constituent who told me that that is today's reality. We now get services via the Internet. That is how we download music, movies and television shows.

We are not asking the government to reinvent the wheel or to go against an existing trend. We are asking it to do two things. First, we are asking it to put all businesses on a level playing field. If Canadians order goods or services online, then they should have to pay sales tax the same way they would in a regular store. That may seem obvious to those watching at home, but the Liberal government has failed to do anything about this for far too long.

The Government of Quebec has led the way, and we hope that the other provinces and territories will follow its lead. However, with all due respect for our National Assembly colleagues, I have to say that it is not enough. The federal government has economic levers that it must use to level the playing field for businesses so that Canadians can benefit from the revenue generated under the law. That is what is lacking right now. However, it is not only the web giants, such as Netflix, Google, and Facebook, that must be required to charge sales tax. All the other digital platforms on which people can purchase goods must be, as well. The government is currently relying on the good faith of some stakeholders who have chosen to proactively charge sales tax.

Second, an agreement needs to be made regarding the future of our culture, specifically with regard to Netflix. I am not as familiar with this topic as my colleague from Longueuil—Saint-Hubert, who I am sure would have a lot to say about music platforms like Spotify and Apple Music. For now, I want focus on Netflix because I do not have much time.

I will not discuss the sales tax for now. I have no doubt the former heritage minister had a rough time in Quebec. Pretty much everyone unanimously agreed that her Netflix deal fell short, not only because of the percentage of francophone and Quebec content, which is nil, but also because the government asked so little of Netflix. The government is counting on the company to operate on the honour system and obey the law proactively.

Madam Speaker, I see your signal that I have just two minutes left. What better proof that it is impossible to study an omnibus bill in the time provided.

France and other countries offer examples of different ways to do this. We can also come up with our own model to acknowledge that this is the new normal without letting Internet giants rake in the profits while crushing our culture. We need to promote our cultural sector so that it can continue to make all of its unique offerings available to us with content that is our very own. This is about quality content and our duty to remember and share.

I will now move on to something else that is missing from the Liberals' budget.

The Minister of National Revenue keeps talking about a $1-billion investment. The only thing that investment did was rub salt in the wound by uncovering the billions of dollars that are lost to tax evasion and tax avoidance. We see that cronyism is alive and well in the Liberal Party. The issue of the Panama papers and the paradise papers has not been resolved. Nothing has been done to recover those billions of dollars. Again, it is a matter of fairness.

In closing, I would say that the omnibus bill does very little to address the problems that the supposedly progressive Liberals promised to fix and this is their third attempt at it. That is three attempts and three failures.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / noon

NDP

Robert Aubin NDP Trois-Rivières, QC

Madam Speaker, I listened closely to my colleague's comments. I really appreciated the parallel he drew at the beginning of his remarks between the current Liberal government and the previous Conservative government and their approach to doing things.

I wonder if he could expand on that because on reading Bill C-86, I am having a hard time differentiating between the Conservatives and the Liberals. Employment insurance has been overlooked, the fight against tax evasion and tax havens has been abandoned. The hon. member talked about Netflix and web giants. All these questions that we have been asking since our cohort was elected in 2011 have not been getting answered, not by the Conservatives or the Liberals.

Is it six of one and half a dozen of the other with these two parties?

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / noon

NDP

Matthew Dubé NDP Beloeil—Chambly, QC

Mr. Speaker, I thank my colleague for his question. He is right.

This government is even more frustrating than the previous one because it just talks and talks and talks, but does nothing. I want to go back to the example of Netflix. The minister kept telling us that Canada had entered the digital era. It was not just worth having for Infoman, it was the subject of Infoman a number of times because it was always being talked about. However, in the end, nothing was done.

My colleague mentioned EI and the issue of 15 weeks of benefits. People who are seriously ill are being ignored even though, as he said so well, people have been asking about it since before this government was elected. In 2015, I participated in a debate specifically on employment insurance that was held in my riding. Without me and my predecessor, who was running for the Bloc Québécois at the time, little would have been said about employment insurance. It seemed to be of no interest to the Liberal candidate. What we can see is that the Liberals still are not very interested. It is unfortunate because the most vulnerable are the ones affected.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / noon

Winnipeg North Manitoba

Liberal

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

Mr. Speaker, I appreciate some of the member's comments. There are a couple of thoughts that cross my mind with respect to the implementation of the budget. One is the fact that for the first time, we are looking at a pharmacare program. The Standing Committee on Health has been looking at this over the past few years. Now a special group is looking at it and will be coming forward to the Minister of Health with recommendations. This would be of great value to Canadians from all regions of the country.

Could my colleague provide his thoughts on the importance of moving forward on a national pharmacare program?

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:05 p.m.

NDP

Matthew Dubé NDP Beloeil—Chambly, QC

Mr. Speaker, yes, of course we want to move forward on that, and we do not understand why the Liberals are not doing so.

They have been promising a pharmacare program for decades. It would be the logical next step in a public health care system that was implemented in the 1960s. However, nothing has been done.

Now they want to study the issue some more. The member mentioned the work of the Standing Committee on Health, which tabled a unanimous report dealing with that issue in which it makes recommendations based on the advice of expert witnesses. I fail to understand why they insist on studying this issue over and over again without ever taking action. The member asked me whether we should move forward. Yes, we need to do so now, because vulnerable people are paying the price of inaction.

As a member from Quebec, I have to point out one last thing. As everyone knows, Quebec is way ahead when it comes to pharmacare. That said, the federal government could do its part by offering the right to opt out with no strings attached and with compensation. Ottawa has tremendous purchasing power that could help bring down the price of prescription drugs for the provinces.

Obviously, this will all depend on how the negotiations go. A lot of work remains to be done to implement this, so let us stop with the studies and let us actually do the work. People desperately need this.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:05 p.m.

Liberal

Marwan Tabbara Liberal Kitchener South—Hespeler, ON

Mr. Speaker, I am pleased to speak today in support of Bill C-86.

For people watching at home, some of what we are discussing today may sound familiar. That is because we heard about these programs earlier this year when the Minister of Finance presented the 2018 budget on February 27.

Budgets, by their nature, are aspirational, forward-looking documents. They are an expression of what we, as a government, are planning to do.

In order to achieve the objectives which we have set out for ourselves in the budget, we must make new laws or make changes to existing laws. To do that, we must pass legislation.

The aspirations in this year's budget took nearly 400 pages to express. If the budget took nearly 400 printed pages to express, the laws needed to implement the plan have to be written. That generally involves multiples of 400 pages and then those laws have to be presented and debated in the House of Commons, be examined by a committee or committees, be passed by the House, then sent to the Senate, debated and reviewed by a Senate committee, passed by the Senate and then sent to the Governor General for royal assent. All that takes a lot of time.

Therefore, we divide the budget plan into those items that need to get passed right away. Soon after the budget is presented, we deal with those items with a first piece of legislation. Then later we deal with the more forward-looking plans in the budget and we create a second piece of legislation to implement the remainder of the budget plan.

Today we are discussing that second piece of legislation to implement the 2018 budget. One of the aspirations expressed in budget 2018 was that we should address the gender wage gap by making progress toward equal pay for equal work. The issue arises because, as the budget said:

In Canada today, women earn 31 per cent less than men do....the median income for women is $28,120, compared with $40,890 for men....As the largest employer in the country, many have called on the federal government to lead by example—and that is what the Government will do.

The bill we are debating today introduces proactive pay equity legislation for workers in the federal government and in federally regulated sectors. Equal pay for work of equal value is the smart thing to do. We are very proud to be moving forward with proactive pay equity legislation. It is a key way in which our government is delivering on its commitment to gender equality.

Bill C-86 proposed to enact 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 would require federal public and private sector employers that would have 10 or more employees to establish and maintain a pay equity plan, with set time frames, to identify and correct differences in compensation between predominantly female and predominantly male job classes for which the work performed would be of equal value.

The new act would provide for the powers, duties and functions of a pay equity commissioner, which would 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 would also requires the pay equity commissioner to report annually to Parliament on the administration and enforcement of the new act.

Bill C-86 would also amend the Parliamentary Employment and Staff Relations Act to provide for the application of the pay equity act to parliamentary employers. It would also make the Minister of Labour responsible for the administration of the federal contractors program for pay equity.

On modernizing the federal labour standards, the amendments to the Canada Labour Code that Bill C-86 would make are:

(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...(e) update group and individual termination provisions by increasing the minimum notice of termination.

Bill C-86 would also amend the Wage Earner Protection Program Act to:

...among other things, increase the maximum amount that may be paid to an individual under the act, 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.

It is interesting to note that while the Liberal federal government is enhancing labour standards for workers, the Conservative provincial government in Ontario is in the process of diminishing labour standards. We would think that the first rule of government would be like that of the medical profession: First do not harm.

I share the disappointment of some members of the House that we were not able to take a further step forward by protecting worker pensions in the event of insolvency of employers. Bill C-86 would make amendments to Canada's insolvency legislation and would improve the Wage Earner Protection Program Act. However, it does not address the issue, which is essentially of deferred wages remaining unpaid. The pension of workers need protection from employers' bankruptcy by giving pension funds priority in employer bankruptcies. I hope we can move forward to correct this problem in the not too distant future.

I also want to talk about our record of our government and what we have done for middle-class Canadians.

The investments made from our government in middle-class Canadians consist of $40 billion in a national housing strategy. This is much-needed and will help Canadians have a decent home to live and raise their families. We have also increased the Canada child benefit, which will be indexed as of this year. An average family will receive $2,000 more in its pocket to help with the high cost of raising its children. We have lifted hundreds of thousands of children out of poverty.

With respect to jobs, we have created over 500,000 new jobs since 2015. We have had the lowest unemployment rate in 40 years. The unemployment rate nationally is around 5.8% to 6%. In Waterloo Region, at the end of October, that unemployment rate was at 5.2%.

We have also announced federal funding for a high-tech company in my riding, North Inc., which is making high-tech Focals, eyeglasses. This has increased jobs in my region. It has added 230 good well-paying jobs in the high-tech sector.

As well, and not in terms of the budget, in my committee of citizenship and immigration, we brought in the global skills strategy to bring in high-tech workers to our region to ensure we closed the gaps in the high-tech sector.

In infrastructure spending, we have added historic spending of $120 billion in infrastructure projects. In my region alone, I have announced $97 million for a highway expansion, going from six lanes to 10 lanes, so we can get our products to market faster and can have faster commutes to and from the GTA from our region.

Also, we have lowered taxes for the middle class, from 22% down to 20.5%. We have also lowered taxes on businesses, from 11% to 9% in 2019.

These are some of the things our government has laid out and it is our record since we formed government. This is why I am supporting this budget.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:15 p.m.

Conservative

Mark Warawa Conservative Langley—Aldergrove, BC

Mr. Speaker, I listened intently to my Liberal colleague sharing with this House and Canadians his perspective on how good the budget is. The theme is spend, spend, spend and spend some more. If any organization, business or family in Canada spent the way the government is spending, would it be sustainable? If a company was to hire more staff, pay higher salaries, provide additional benefits, and spend and spend all on borrowed money, how long can that go on? I believe it cannot go on, it is not sustainable, and a company would go out of business because it cannot live and prosper on borrowed money. Therefore, the question is this. Does he believe this is sustainable? Hopefully, he will say no. If so, when will the budget be balanced?

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:15 p.m.

Liberal

Marwan Tabbara Liberal Kitchener South—Hespeler, ON

Mr. Speaker, the Conservatives are the opposition and, rightfully so, they have to ensure the government is investing in Canadians, that investment is recuperating and that investment is coming back to Canadians. Therefore, I will provide the House with the record.

Since we have taken office, we have invested in Canadians. We have seen an unemployment rate hovering around 7%, now down to 5.8% or around 6%. As I mentioned in my speech, in my region it is at 5.2%. When we put the investments in place for Canadians we see that record.

Also, we have lowered taxes on middle-class Canadians from 22% down to 20.5%. That has led to Canadians spending more in the economy and when there is more spending more businesses will be able to sell their products. We have seen that kind of a record. When we invest in Canadians, we see that record coming back.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:15 p.m.

NDP

Scott Duvall NDP Hamilton Mountain, ON

Mr. Speaker, my hon. colleague mentioned the Bankruptcy Act. He was talking about pension protection on deferred wages. Did I hear him correctly? Did he say that he is for making sure that pensions are protected and that these are deferred wages and should have a higher priority with respect to a bankruptcy liquidation?

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:15 p.m.

Liberal

Marwan Tabbara Liberal Kitchener South—Hespeler, ON

Mr. Speaker, there have been companies in the past that have gone into insolvency or bankruptcy and a lot of the time pensioners were the last to get paid. We have seen it here with Nortel in Ottawa and I am sure the member has seen it in his region in Hamilton. Moving forward, we want to see that pensioners are protected. A lot of the pensioners who are in unions have taken minimal wage increases throughout the years in order to protect their pensions and their benefits. Therefore, we want to ensure that pensions are protected. Personally, I want to see this going forward so that we can see pensioners being protected.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:20 p.m.

Conservative

Gérard Deltell Conservative Louis-Saint-Laurent, QC

Mr. Speaker, I want to thank my colleague for his speech.

Everyone understands that it is never a good idea to limit debate on a bill, especially on such a large bill. This one here has nearly 900 pages.

We cannot forget that this political party made a promise during the last election campaign to not introduce massive omnibus bills. The Liberals also promised to limit the use of time allocation measures. They are reneging on their commitments.

For us, the worst part is having to watch the government continue to run up deficits. We have no idea when the budget will be balanced again. A member was elected three years and a couple months ago on the promise that Canada would return to a balanced budget in 2019.

Why did the government and this member not keep their word?

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:20 p.m.

Liberal

Marwan Tabbara Liberal Kitchener South—Hespeler, ON

Mr. Speaker, we made a promise to invest in Canadians, and that is what we are doing. We are doing the best of the G7 countries. Canadian wages are among the best in the G7 countries. We will continue to invest in Canadians. We will see this record through. We will ensure that we are doing the best for Canadians by investing in them and opening up markets, which we have done with the TPP, CETA and the new USMCA. We will continue to deliver for Canadians.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:20 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

Mr. Speaker, it is an honour to rise today to speak to Bill C-86, the budget implementation act. I feel fortunate that I will get to speak on this bill, but because of time allocation on this bill and multiple others by the government, many of my colleagues are not going to have the opportunity to debate it. I feel fortunate that I at least get to debate the bill and question the government.

It has been pointed out many times that the government made numerous promises in its election campaign that it has no intention of upholding. When I make a promise, I vow to uphold it, but the government seems to have no respect for that whatsoever or for Canadian citizens, which I find simply abhorrent.

Liberals promised not to introduce omnibus bills and yet we have a budget implementation act of over 800 pages, almost 900 pages, in fact. Just the summary of this bill is over 12 pages long. It is a massive bill that deserves full debate in the House, but with time allocation being applied, we will not get that opportunity. I have spoken with my colleagues who wanted parts of this bill taken out and debated separately in committee, but those requests were denied by the Liberals at committee. It is a shame that we cannot properly debate a bill that is so important to every Canadian.

I will go back to the election promises that the government made back in 2015. Liberals claim to have been elected on a mandate of what they said they would do for the Canadian public and a big part of it was to keep the deficit below $10 billion per year. That is a promise broken. Another part of the 2015 election campaign was that deficits would decrease annually as Liberals moved through their mandate. That is a promise broken. Liberals promised to reach a balanced budget by 2019. That is a promise broken. They promised to be open and transparent in their government. We have seen multiple times how that promise has been broken and we have another example of it again today with time allocation being applied to debate on this bill so that we cannot fully expose this bill for what it is to the Canadian public.

When I return to my riding of North Okanagan—Shuswap, increasingly people approach me and ask what we can do to stop this out-of-control spending by the government and the debt that it is passing on to future generations. That truly concerns me. There are a lot of young entrepreneurs in my riding looking to a brighter future, but we see what the government is doing with these continual deficits of nearly $20 billion year after year. Most people cannot visualize what that $20 billion would look like in a project in the town or community they live in or a project at home.

That $20 billion does not translate easily to individuals, but it creates an approximate $600 debt load per person. The government puts every man, woman, child, infant and senior in Canada further in debt by almost $600 every year. In three years, that is $1,800 for every man, woman and child. Imagine what it will cost a family of four people. It is unbelievable when people hear what this really means for families and individuals. When we work into that the percentage of Canadians who are full time in the workforce, it is probably about 25% of Canadians. Therefore, one in four Canadians is paying back the incredible debt that the government is building up.

In 2019, we are working towards electing a Conservative government, led by our leader. We are looking forward to bringing reality back to finances in Canada, so that we can provide hope and prosperity, and a future for those young Canadians.

The only way we are going to be able to do that is to try to keep them out of this incredible debt that the government keeps piling on. I cannot imagine. I have a daughter and son-in-law who have established themselves, but I cannot imagine having teenagers or young children right now and having to tell them that, with the government, they are going to be another $500 or $600 per year further in debt every time the government passes a budget. That is very troubling to me. I cannot imagine passing on that information on the doorstep.

That is what I am hearing from people when I am back home. They do not want that debt passed on to their children. Time and time again, people are asking, “How can we stop this?”

Another of the factors that have popped up in this bill and that have been pointed out is the increase in the debt servicing costs of government. It will not matter whether it is a Liberal, Conservative, coalition or minority government. It will not matter; the increased debt servicing costs could grow by up to 60% under the current government's plan. That is incomprehensible. It will mean that we could end up paying more in debt servicing per year than our current health care transfers to the provinces.

What it means is that what the government is creating in deficits and debt load to future governments is going to be taking away from something else that we should be able to pay for in the future. Whether that is housing, health care or business investment, all of those things are going to be impacted by the debt load that is currently being passed on by the government.

Getting back to some more of the promises that were made by the government and have now been broken, it promised to reduce business taxes. It has done that in some ways, but in other ways it has reached into the back pockets of business people and taken more out than it has actually put in. It did that earlier this year with the implementation of the deferred income taxes.

The government increased taxes on passive income investments. It will be up to 73% that individuals will have to pay on those passive investments. That is absolutely killing corporate investment in avenues other than their core business. Many people who had surplus income in their primary business decided to purchase rental properties, whether it was detached homes or small apartment buildings and so on. They would invest their extra income in purchasing those rental properties to create lower-income rental opportunities for individuals in the community who could not afford to purchase their own home.

I have had those individuals approach me time and time again over the summer and since, and they say they are no longer going to do that. There is no point in investing in a secondary business other than their primary investment. It is no longer feasible because of what the government is doing.

I know my time is running down, so I will try to wrap up. With over 800 pages in this bill, it is really difficult to fit in much detail about the individual pieces in a 10-minute presentation. Again, I want to stress the fact that the government has moved time allocation on the bill which, for most of our members, will remove the opportunity to speak on this bill. Again, it is deplorable that the government keeps doing this. I cannot comprehend how we are going to get past this.

We need to work together, as government and as opposition, on what is good for Canadians, but the government is making it almost impossible. I will wrap up with that statement.

Report stageBudget Implementation Act, 2018, No. 2Government Orders

November 27th, 2018 / 12:30 p.m.

Winnipeg North Manitoba

Liberal

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

Mr. Speaker, one of the common issues constantly brought up by Conservative members, whether in speeches or when asking questions, is the deficit.

When I think of deficits, I think of the last 151 years of the Canadian Confederation. In that last 151 years, Conservatives have governed the country 38% of the time, and yet have accumulated almost 75% of our deficits. Nevertheless, when they are in opposition, they seen to be so focused on deficits. That seems to be at odds with their history. In government, the Conservatives do not really care about deficits, as the historical numbers clearly demonstrate, yet when they are in opposition they want to talk about deficits. Could my colleague explain why?