Bill C-97 (Historical)

Budget Implementation Act, 2019, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2019 and other measures

Part 1 implements certain income tax and related measures by
(a) providing a temporary enhanced first-year capital cost allowance rate of 100% in respect of eligible zero-emission vehicles;
(b) removing the requirement that property be of “national importance” in order to qualify for the enhanced tax incentives for donations of cultural property;
(c) providing a temporary enhanced first-year capital cost allowance rate in respect of a wide range of depreciable capital properties, including a temporary first-year capital cost allowance rate of 100% in respect of
(i) machinery and equipment used for the manufacturing or processing of goods, and
(ii) specified clean energy equipment;
(d) ensuring that social assistance payments under certain programs are non-taxable, are not included in income for the purposes of determining entitlement to income-tested benefits and credits and do not preclude an individual from being considered a “parent” for the purposes of the Canada Workers Benefit;
(e) repealing the use of taxable income as a factor in determining a Canadian-controlled private corporation’s annual expenditure limit for the purpose of the enhanced scientific research and experimental development tax credit;
(f) providing support for Canadian journalism;
(g) introducing the Canada Training Credit;
(h) amending the Income Tax Act to reflect the current regulations for accessing cannabis for medical purposes;
(i) eliminating the requirement that sales be to a farming or fishing cooperative corporation in order to be excluded from specified corporate income for the purposes of the small business deduction;
(j) extending the mineral exploration tax credit for an additional five years;
(k) ensuring that business income of a communal organization retains its character when it is allocated to members of the communal organization for tax purposes;
(l) increasing the withdrawal limit under the Home Buyers’ Plan and amending how it applies on the breakdown of a marriage or common-law partnership;
(m) extending joint and several liability for tax owing on income from carrying on business in a TFSA to the TFSA’s holder and limiting the TFSA issuer’s liability for such tax;
(n) supporting employees who must reimburse a salary overpayment to their employer due to a system, administrative or clerical error;
(o) expanding tax support for electric vehicle charging stations and electrical energy storage equipment;
(p) allowing joint projects of producers from Canada and Belgium to qualify for the Canadian film or video production tax credit; and
(q) ensuring appropriate pension adjustment calculations in 2019 and subsequent tax years for registered pension plans that reference the enhanced Canada Pension Plan.
Part 2 implements certain goods and services tax/harmonized sales tax (GST/HST) measures proposed in the March 19, 2019 budget
(a) to provide GST/HST relief in the health care sector by relieving the GST/HST on supplies and importations of human ova and importations of in vitro embryos, by adding licenced podiatrists and chiropodists to the list of practitioners on whose order supplies of foot care devices are zero-rated and by exempting from the GST/HST certain health care services rendered by a multidisciplinary team of licenced health care professionals; and
(b) by introducing amendments to ensure that the GST/HST treatment of expenses incurred in respect of zero-emission passenger vehicles parallels the income tax treatment of those vehicles.
Part 3 implements certain excise measures proposed in the March 19, 2019 budget by changing the federal excise duty rates on cannabis products that are edible cannabis, cannabis extracts (including cannabis oils) and cannabis topicals to $0.‍0025 per milligram of total tetrahydrocannabinol contained in the cannabis product.
Part 4 enacts and amends several Acts in order to implement various measures.
Subdivision A of Division 1 of Part 4 amends the Bank Act to, among other things, provide members of federal credit unions with different methods of voting prior to meetings and provide additional exceptions to the requirement that a proxy circular be sent in order to solicit proxies. The Subdivision also makes a technical amendment to An Act to amend certain Acts in relation to financial institutions.
Subdivision B of Division 1 of Part 4 amends the Canadian Payments Act to allow the term of the elected directors of the Board of Directors of the Canadian Payments Association to be renewed twice, to extend the term of the Chairperson and Deputy Chairperson of that Board and to allow the remuneration of certain members of the Stakeholder Advisory Council.
Subdivision A of Division 2 of Part 4 amends the Canada Business Corporations Act to require a corporation, on request by an investigative body that has reasonable grounds to suspect that certain offences have been committed, to provide to the investigative body a copy of its register of individuals with significant control or information in that registry that is specified by the investigative body. It also requires those investigative bodies to keep certain records in relation to their requests and to report annually in respect of those requests.
Subdivision B of Division 2 of Part 4 amends the Criminal Code to add the element of recklessness to the offence of laundering proceeds of crime.
Subdivision C of Division 2 of Part 4 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things,
(a) allow the Governor in Council to make regulations defining “virtual currency” and “dealing in virtual currencies”;
(b) require the Financial Transactions and Reports Analysis Centre of Canada (“the Centre”) to disclose information to the Agence du Revenu du Québec and the Competition Bureau in certain circumstances;
(c) allow the Centre to disclose additional designated information that is associated with the import and export of currency and monetary instruments;
(d) provide that certain information must not be the subject of a confidentiality order made in the course of an appeal to the Federal Court; and
(e) require the Centre to make public certain information if a person or entity is deemed to have committed a violation or is served a notice of a decision of the Director indicating that a person or entity has committed a violation.
Subdivision D of Division 2 of Part 4 amends the Seized Property Management Act to authorize the Minister to, among other things,
(a) provide consultative and other services to any person employed in the federal public administration or by a provincial or municipal authority in relation to the seizure, restraint, custody, management, forfeiture or disposal of certain property;
(b) manage property seized, restrained or forfeited under any Act of Parliament or of the legislature of a province; and
(c) dispose of property when it is forfeited to Her Majesty in right of Canada and, with the consent of the government of the province, when it is forfeited to Her Majesty in right of a province, and share the proceeds.
The Subdivision also makes consequential amendments to the Criminal Code, the Crimes Against Humanity and War Crimes Act and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Division 3 of Part 4 amends the Employment Equity Act to require federally regulated private-sector employers to report salary information that supports employment equity reporting beyond salary ranges, including making wage gap information by occupational groups more evident.
Division 4 of Part 4 authorizes payments to be made out of the Consolidated Revenue Fund for climate action support and in relation to infrastructure as well as to the Federation of Canadian Municipalities and to the Shock Trauma Air Rescue Service.
Division 5 of Part 4 amends the Bankruptcy and Insolvency Act to, among other things,
(a) require all parties in a proceeding under the Act to act in good faith; and
(b) allow the court to inquire into certain payments made to, among other persons, directors or officers of a corporation in the year preceding insolvency and imposes liability on the directors for those payments.
The Division amends the Companies’ Creditors Arrangement Act to, among other things,
(a) limit the relief provided in an order made under section 11 to what is reasonably necessary and limit the period staying all proceedings that might be taken in respect of the company to 10 days;
(b) allow the court to make an order to disclose an economic interest in respect of a debtor company; and
(c) require all parties in a proceeding under the Act to act in good faith.
The Division also amends the Canada Business Corporations Act to, among other things,
(a) set out factors that directors and officers of a corporation may consider when acting with a view to the best interests of that corporation; and
(b) require directors of certain corporations to disclose certain information to shareholders respecting diversity, well-being and remuneration.
Finally, the Division amends the Pension Benefits Standards Act, 1985 to clarify that a pension plan is not to provide that, among other things, a member’s pension benefit or entitlement to a pension benefit is affected when a plan terminates. It also authorizes a pension plan administrator to purchase an immediate or deferred life annuity for former members or survivors in order to satisfy an obligation under the plan to provide a pension benefit arising from a defined benefit provision.
Division 6 of Part 4 amends the Canada Pension Plan to authorize the Minister of Employment and Social Development to waive the requirement for an application for a retirement pension in certain cases.
Division 7 of Part 4 amends the Old Age Security Act to provide, starting in July 2020, a new income exemption for the purposes of calculating the Guaranteed Income Supplement. The new exemption excludes the first $5,000 of a person’s employment and self-employment income as well as 50% of their employment and self-employment income greater than $5,000 but not exceeding $15,000.
Division 8 of Part 4 amends the Canadian Forces Superannuation Act, the Public Service Superannuation Act and the Royal Canadian Mounted Police Superannuation Act to increase the surplus limit that applies to the Canadian Forces Pension Fund, the Public Service Pension Fund and the Royal Canadian Mounted Police Pension Fund, respectively, to 25% of the amount of liabilities.
Subdivision A of Division 9 of Part 4 amends the Bankruptcy and Insolvency Act to permit trustee licensing fees to be paid on a date to be prescribed by regulation and to permit trustees to maintain electronic records instead of retaining original documents.
Subdivision B of Division 9 of Part 4 amends the Electricity and Gas Inspection Act to allow for the addition, by regulation, of units of measurement for electricity and gas sales and distribution.
Subdivision C of Division 9 of Part 4 amends the Food and Drugs Act to improve safety and enable innovation by introducing measures to, among other things,
(a) allow the Minister of Health to classify certain products exclusively as foods, drugs, cosmetics or devices;
(b) provide oversight over the conduct of clinical trials for drugs, devices and certain foods for special dietary purposes;
(c) provide a regulatory framework for advanced therapeutic products; and
(d) modernize inspection powers.
Subdivision D of Division 9 of Part 4 amends the Importation of Intoxicating Liquors Act to limit the application of the Act to intoxicating liquors imported into Canada.
Subdivision E of Division 9 of Part 4 amends the Precious Metals Marking Act to provide that exemptions made by regulation can be either conditional or unconditional.
Subdivision F of Division 9 of Part 4 amends the Textile Labelling Act to provide that exemptions made by regulation can be either conditional or unconditional.
Subdivision G of Division 9 of Part 4 amends the Weights and Measures Act to authorize, by regulation, the use of new units of measurement and to update the definitions of the basic units of measurement in accordance with international standards.
Subdivision H of Division 9 of Part 4 amends the Hazardous Materials Information Review Act to streamline the process for reviewing claims for exemption, to allow for the suspension and cancellation of exemptions and to harmonize the provisions of the Act that allow for the disclosure of confidential business information with similar provisions in other Department of Health Acts.
Subdivision I of Division 9 of Part 4 amends the Canada Transportation Act to authorize the electronic administration and enforcement of Acts under the Minister of Transport’s authority and to promote innovation in transportation by authorizing the granting of exemptions for the purpose of research, development and testing.
Subdivision J of Division 9 of Part 4 amends the Pest Control Products Act to, among other things, allow the Minister of Health to
(a) expand the scope of a re-evaluation of, or a special review in relation to, a pest control product rather than initiating a new special review; and
(b) decide not to initiate a special review if the aspect of a pest control product that would otherwise prompt such a review is being, or has been, addressed in a re-evaluation or another special review.
Subdivision K of Division 9 of Part 4 repeals the provisions of the Quarantine Act that relate to the laying of proposed regulations before Parliament.
Subdivision L of Division 9 of Part 4 repeals the provisions of the Human Pathogens and Toxins Act that relate to the laying of proposed regulations before Parliament.
Division 10 of Part 4 amends the Royal Canadian Mounted Police Act to establish the Management Advisory Board, which is to provide advice to the Commissioner of the Royal Canadian Mounted Police on the administration and management of that police force.
Division 11 of Part 4 amends the Pilotage Act to, among other things,
(a) set out a clear purpose and principles for that Act;
(b) transfer the responsibility for making regulations from the Pilotage Authorities, with the approval of the Governor in Council, to the Governor in Council, on the recommendation of the Minister of Transport;
(c) transfer responsibility for enforcing that Act and issuing and charging for licences and certificates from the Pilotage Authorities to the Minister of Transport;
(d) set out an enforcement regime that is consistent with other Department of Transport Acts;
(e) provide that regulatory matters for the safe provision of compulsory pilotage services not be addressed in service contracts between the Pilotage Authorities and pilot corporations;
(f) allow the Pilotage Authorities to impose charges other than by making regulations;
(g) require that service contracts between pilot corporations and the Pilotage Authorities be publicly available; and
(h) prohibit pilots, or users or suppliers of pilotage services, from sitting on the board of directors of a Pilotage Authority.
The Division also makes consequential amendments to the Arctic Waters Pollution Prevention Act and the Transportation Appeal Tribunal of Canada Act.
Division 12 of Part 4 enacts the Security Screening Services Commercialization Act. That Act, among other things,
(a) authorizes the Governor in Council to designate a body corporate incorporated under the Canada Not-for-profit Corporations Act as the designated screening authority, which is to be solely responsible for providing aviation security screening services;
(b) authorizes the Canadian Air Transport Security Authority to sell or otherwise dispose of its assets and liabilities to the designated screening authority;
(c) regulates the establishment, imposition and collection of charges related to the provision of aviation security screening services; and
(d) provides for the dissolution of the Canadian Air Transport Security Authority.
The Division also makes consequential amendments to other Acts.
Division 13 of Part 4 amends the Aviation Industry Indemnity Act to authorize the Minister of Transport to undertake to indemnify
(a) NAV CANADA for acts or omissions it commits in accordance with an instruction given under an agreement entered into between NAV CANADA and Her Majesty respecting the provision of air navigation services to the Department of National Defence; and
(b) any beneficiary under an insurance policy held by an aviation industry participant.
Division 14 of Part 4 amends the Transportation Appeal Tribunal of Canada Act to clarify that the Transportation Appeal Tribunal of Canada has jurisdiction in respect of reviews and appeals in connection with administrative monetary penalties provided for under the Marine Liability Act.
Division 15 of Part 4 enacts the College of Immigration and Citizenship Consultants Act. That Act creates a new self-regulatory regime governing immigration and citizenship consultants. It provides that the purpose of the College of Immigration and Citizenship Consultants is to regulate immigration and citizenship consultants in the public interest and protect the public. That Act, among other things,
(a) creates a licensing regime for immigration and citizenship consultants and requires that licensees comply with a code of professional conduct, initially established by the responsible Minister;
(b) authorizes the College’s Complaints Committee to conduct investigations into a licensee’s conduct and activities;
(c) authorizes the College’s Discipline Committee to take or require action if it determines that a licensee has committed professional misconduct or was incompetent;
(d) prohibits persons who are not licensees from using certain titles and representing themselves to be licensees and provides that the College may seek an injunction for the contravention of those prohibitions;
(e) provides the responsible Minister with the authority to determine the number of directors on the board of directors and to require the Board to do anything that is advisable to carry out the purposes of that Act; and
(f) contains transitional provisions allowing the existing regulator — the Immigration Consultants of Canada Regulatory Council — to be continued as the College of Immigration and Citizenship Consultants or, if the existing regulator is not continued, allowing the establishment of the College of Immigration and Citizenship Consultants, a new corporation without share capital.
The Division also makes related amendments to the Citizenship Act and the Immigration and Refugee Protection Act to double the existing maximum fines applicable to the offence of contravening section 21.‍1 of the Citizenship Act or section 91 of the Immigration and Refugee Protection Act.
In addition, it amends those Acts to provide the authority to make regulations establishing a system of administrative penalties and consequences, including of administrative monetary penalties, applicable to certain violations by persons who provide representation or advice for consideration — or offer to do so — in immigration or citizenship matters.
Finally, the Division makes consequential amendments to the Access to Information Act and the Privacy Act.
Division 16 of Part 4 amends the Immigration and Refugee Protection Act to
(a) introduce a new ground of ineligibility for refugee protection if a claimant has previously made a claim for refugee protection in another country;
(b) provide that if the Federal Court refuses a person’s application for leave to commence an application for judicial review, or denies their application for judicial review, with respect to their claim for refugee protection or their application for protection, the date of that refusal or denial is the first day of the period that must pass before a request or application referred to in section 24, 25 or 112 of that Act may be made; and
(c) authorize the Governor in Council to make an order regarding the processing of applications for temporary resident visas, work permits and study permits made by citizens or nationals of a foreign state or territory if the Governor in Council is of the opinion that the government or competent authority of that state or territory is unreasonably refusing to issue or unreasonably delaying the issuance of travel documents to citizens or nationals of that state or territory who are in Canada.
Division 17 of Part 4 amends the Federal Courts Act to increase the number of Federal Court judges.
Division 18 of Part 4 amends the National Housing Act to allow the Canada Mortgage and Housing Corporation to acquire an interest or right in a housing project that is occupied or intended to be occupied by the owner of the project and to make an investment in order to acquire such an interest or right.
Division 19 of Part 4 enacts the National Housing Strategy Act. That Act provides for, among other things, the development and maintenance of a national housing strategy and imposes requirements related to the mandatory content of the strategy. It also establishes a National Housing Council and requires the appointment of a Federal Housing Advocate. Finally, it requires the submission of an annual report by the Advocate on systemic housing issues and the submission of periodic reports by the designated Minister on the implementation of the strategy and the achievement of desired housing outcomes.
Division 20 of Part 4 enacts the Poverty Reduction Act, which provides for an official metric and other metrics to measure the level of poverty in Canada, sets out two poverty reduction targets in Canada and establishes the National Advisory Council on Poverty.
Division 21 of Part 4 amends the Veterans Well-being Act to expand the eligibility criteria for the education and training benefit in order to make members of the Supplementary Reserve eligible for that benefit.
Division 22 of Part 4 amends the Canada Student Loans Act and the Canada Student Financial Assistance Act to extend the interest-free period on student loans by six months and to provide for transitional measures in respect of individuals to whom student loans were made and who ceased to be students at any time during the six months before the amendments come into force.
Division 23 of Part 4 amends the Canada National Parks Act to establish Thaidene Nene National Park Reserve of Canada and to decrease the hectarage of certain ski areas.
Division 24 of Part 4 amends the Parks Canada Agency Act to provide that, starting on April 1, 2021, any balance of money appropriated to the Parks Canada Agency that is not spent by the Agency in the fiscal year in which it was appropriated lapses at the end of that fiscal year.
Subdivision A of Division 25 of Part 4 enacts the Department of Indigenous Services Act, which establishes the Department of Indigenous Services and confers on the Minister of Indigenous Services various responsibilities relating to the provision of services to Indigenous individuals eligible to receive those services.
Subdivision B of Division 25 of Part 4 enacts the Department of Crown-Indigenous Relations and Northern Affairs Act, which establishes the Department of Crown-Indigenous Relations and Northern Affairs, confers on the Minister of Crown-Indigenous Relations various responsibilities relating to relations with Indigenous peoples and confers on the Minister of Northern Affairs various responsibilities relating to the administration of Northern affairs.
Subdivision C of Division 25 of Part 4 makes amendments to other Acts and repeals the Department of Indian Affairs and Northern Development Act.
Subdivision D of Division 25 of Part 4 makes amendments to the First Nations Land Management Act, the First Nations Oil and Gas and Moneys Management Act and the Addition of Lands to Reserves and Reserve Creation Act.
Division 26 of Part 4 enacts the Federal Prompt Payment for Construction Work Act in order to establish a regime to provide prompt payments to contractors and subcontractors for construction work performed for the purposes of a construction project in respect of federal real property or federal immovables and a regime to resolve disputes over the non-payment of that construction work.

Budget Implementation Act, 2019, No. 1

[John Aldag, Liberal, Cloverdale—Langley City, BC]

Mr. Speaker, I am grateful for this opportunity today to speak to Bill C-97, the budget implementation act.

With budget 2019, our government would continue to invest in the middle class and in communities across Canada, such as Langley City, the Township of Langley and the city of Surrey, all located within the riding I represent, Cloverdale—Langley City.

Whether it is helping Canadians buy their first home or investing in clean energy and public transit, budget 2019 focuses on the current challenges faced by everyday Canadians and would address them in meaningful ways that would give help where people needed it the most. I will be speaking on measures that would address those issues today.

Budget 2019 is our government's fourth budget and would build on the work and progress our government has in made these past four years.

Today Canada's economy is one of the fastest growing in the G7. Since 2015, Canadians have created more than 900,000 new jobs. Thanks to the middle-class tax cut and the tax-free Canada child benefit, families in the riding of Cloverdale—Langley City have more money in their pockets to help make ends meet. However, it is important to recognize that there is still more work to do, and we need to get on it now. Budget 2019 is a good next step that would help ensure that all Canadians share in this growing prosperity.

The biggest issue I hear about at doors in Cloverdale—Langley City is housing. Everyone needs a safe and affordable place to call home, but today too many Canadians are being priced out of the housing market. This budget would help address this issue in several ways.

To start, budget 2019 proposes to invest $300 million to launch a new housing supply challenge. The housing supply challenge would invite municipalities and Canadians across the country to propose new ways to break down barriers that limit the creation of new housing.

We would also expand the rental construction financing initiative, helping to build more affordable rental options for Canadians so they can live near where they work or study, and we are tackling homelessness across the country through the reaching home strategy.

A new rental building project in my riding, with 100 units, had more than 2,000 people apply for those units, demonstrating the need for significantly more rental options in Cloverdale—Langley City.

Budget 2019 proposes an additional $10 billion over nine years, extending this program until 2027-28. This would help create 42,500 new rental units across Canada, with a particular focus in areas of low rental supply.

To address the difficulty young families may have buying their first home, through Bill C-97, budget 2019 proposes a new first-time homebuyer incentive. With this extra help in the shape of a shared equity mortgage through the Canada Mortgage and Housing Corporation, Canadians could lower their monthly mortgage payments, making home ownership more affordable. The incentive would provide funding of 5% or 10% of the home purchase price for existing or new homes respectively, with no ongoing monthly payments required. The program is expected to help approximately 100,000 Canadians buy homes they can afford.

Additionally, budget 2019 proposes to increase the home buyers' plan withdrawal limit to $35,000 from $25,000. The home buyers' plan allows first-time home buyers to withdraw from their registered retirement savings plans to purchase or build a home without having to pay tax on the withdrawal.

I am excited about what our investments in infrastructure through budget 2019 would mean for communities across the country that need funding to get local projects done. Through budget 2019, we would ensure that infrastructure funding would get to those who have shown that they are willing and able to get projects done: our local and municipal governments.

We would invest a one-time top-up of $2.2 billion, through the federal gas tax fund, to get infrastructure funding in the hands of those who would ensure that it was invested in jobs to build our communities. This funding would address short-term priorities in municipalities and first nation communities. Cloverdale—Langley City would receive an additional top-up of approximately $2,041,652.03. With 95% of this money going toward TransLink, our regional transit infrastructure, it would help deal with a much-needed expansion in support of a growing network for our growing population.

Working with provinces and territories, the government has approved more than 33,000 infrastructure projects for communities across Canada, supported by federal investments of approximately $19.9 billion. In my riding, these investments will mean better highways, cleaner parks and new community centres. In fact, just last week I welcomed the Minister of Infrastructure and Communities to my region for a joint funding announcement with the provincial and municipal governments for major improvements to the Trans-Canada Highway.

The $235.5-million investment will upgrade the stretch of highway between 216th Street and 264th Street and will include new high occupancy vehicle lanes, a new underpass and a new truck parking lot. This is an important step in addressing a significant pinch point in the regional transportation network in the Lower Mainland and the Fraser Valley.

Through Bill C-97, budget 2019 proposes measures that would make life more affordable for Canadian seniors and that would empower those who want to stay active and involved in their communities. Our government would increase the GIS exemption from $3,500 to $5,000 per year to give more of our fixed-income seniors the choice to continue to work without being penalized. We would begin proactive CPP enrolment at age 70 to ensure that no seniors missed out on benefits they were entitled to.

We would increase transparency and launch an initiative to change corporate laws to increase oversight and grant the courts a greater ability to review payments made to executives in the lead-up to insolvency, protecting workplace pensions from predatory practices.

Budget 2019 proposes significant additional funding of $100 million over five years, with $20 million per year ongoing, for the new horizons for seniors program so that it can continue to improve seniors' quality of life and better promote their active participation in the community. Many organizations and seniors have benefited from the new horizons for seniors program in Cloverdale—Langley City. With these enhancements, even more seniors would benefit from additional programs.

I would also like to highlight the work we are doing to address the opioid crisis. Through budget 2018, we provided $231.4 million over five years for measures to help address the growing problem, such as one-time emergency funding of $150 million for provinces and territories for multi-year projects to improve access to evidence-based treatment services.

Budget 2019 would build on this work and proposes to provide additional funding of $30.5 million over five years, starting in 2019-20, with $1 million in ongoing funding, for targeted measures to address persistent gaps in harm reduction and treatment. This funding would support efforts to expand access to a safe supply of prescription opioids, protecting people with problematic opioid use from the risk of overdose and death. It would also support better access to opioid overdose response training and to naloxone, a life-saving medication that can stop or reverse an opioid overdose, in underserved communities.

I recently spoke with the hard-working members of the Langley City Fire Rescue Service, who battle this opioid crisis on a daily basis. They agree that continued investments in the fight to end opioid overdoses and deaths is needed.

Budget 2019 is a budget that would work for everyone. Through this budget, we would implement new programs that would help Canadians progress in their careers, address the growing price of medication and advance our plan to grow a clean economy. I would like to go over these briefly.

First, budget 2019 would introduce a new Canada training benefit, a personalized, portable training benefit to help people plan for and get the training they need. Through this measure, Canadians would get four weeks of training every four years, up to $1,000 to help pay for training, income support to help with everyday expenses and the security of knowing that they would have a job to come back to when their training was done. At a recent meeting with the Greater Langley Chamber of Commerce the need for a well-trained workforce with relevant skills was discussed. The Canada training benefit would help address this need of business.

Through budget 2019, we would lay the foundation for the implementation of a national pharmacare program while we await the final report of our advisory council on its full implementation. We would do so by creating the Canadian drug agency, a national formulary, and a national strategy for high-cost drugs for rare diseases.

Finally, budget 2019 would take the next steps in our plan to grow a clean economy and make life more affordable for Canadians. These steps would include deploying new recharging and refuelling stations and working with manufacturers to secure voluntary zero-emission vehicle sales targets to ensure that vehicle supply meets increased demand.

We would also introduce a new federal purchase incentive of up to $5,000 for electric battery or hydrogen fuel cell vehicles. This would help make zero-emission vehicles a realistic option for more Canadians by making them up to $5,000 cheaper, by building the infrastructure to support them and by encouraging new investments in zero-emission vehicle manufacturing here in Canada. To support businesses' adoption of zero-emission vehicles, budget 2019 proposes that these vehicles be eligible for a full tax write-off in the year they are put to use.

Our government has a plan, and that plan is working. Through budget 2019, we would invest in our communities and support those who need it the most. While there is still more work that needs to be done, budget 2019 would be another step in the right direction. This is a budget that I am proud to stand behind, and I urge every member of this chamber to do exactly the same.

[The Chair, Liberal, Wayne Easter]

I think that's it for Bill S-6.

Mr. McGowan, today was a much easier run than yesterday.

We do have another matter that's just come up that we don't necessarily have to deal with, but to save time later.... This note has been sent to you electronically, so I'll read it. It deals with Bill C-97.

Dear Mr. Easter,

In response to your letter dated Tuesday, April 9, 2019, I would like to inform you that the Standing Committee on Citizenship and Immigration has accepted to study the subject-matter of Part 4, division 15 of Bill C-97, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2019, and other measures.

The Committee has also adopted a motion to study the subject-matter of Part 4, division 16 of the Bill and would invite the Standing Committee on Finance to consider any proposed amendments from the Standing Committee on Citizenship and Immigration, pertaining to this division, deemed to be proposed during your Committee's clause-by-clause consideration of Bill C-97.

Please find attached motions adopted by the Standing Committee on Citizenship and Immigration regarding the consideration of subject matter, Part 4, division 15 and Part 4, division 16 of the Bill.

As requested, the Committee will send the Committee's recommendation, including any suggested amendments, in both official languages no later than 4:00 p.m. on Friday, May 17, 2019.

Sincerely,

Rob Oliphant

Chair

What they're basically saying in the letter is that, beyond what we agreed in our motion to send them, they would also like to deal with the additional subject matter of part 4, division 16, of the bill, which relates, I believe, to asylum.

Are we in agreement? Do we want to say we accept their motion and the Standing Committee on Citizenship and Immigration can deal with that matter and report back to us? Are we agreed on that?

[Tom Lukiwski, Conservative, Moose Jaw—Lake Centre—Lanigan, SK]

Mr. Speaker, I thank my colleague from Winnipeg North for being so gracious in allowing me to participate in this debate today.

I am very pleased to speak to Bill C-97, the government's budget implementation act. It allows me the opportunity to examine in some detail why the Liberal government should not be re-elected this October. I say that because the government, if nothing else, has exhibited a litany of broken promises since 2015. Allow me to explain and highlight just a few of them.

As many Canadians may remember, during the election campaign in 2015, one of the many promises the Liberals made was to end what they called the undemocratic practice of introducing omnibus budget bills. What did we see this year? We saw another in a series of omnibus budget bills. In fact, the budget bill tabled this year is over 700 pages in length, making it the most lengthy budget bill ever introduced in parliamentary history. So much for stopping the practice of introducing omnibus budget bills.

I only note this as an example of one of the Liberals' broken promises. There are many more.

I will spend a little time on the second example, which is the most alarming of all the broken promises from the Liberals. This is the promise they made in 2015 to run, only for a three-year period, modest deficits of no more than $10 billion. They also promised that by the year 2019, the fourth year in their four-year mandate, they would return to balanced budgets. It is now 2019 and where are we? Do we have a balanced budget? We certainly do not. In fact, we have the furthest thing from it.

What is truly alarming is that on multiple occasions in committee, the finance minister of our country admitted that not only would we not return to balanced budgets in the foreseeable future, but he did not know when we might.

Let us think about that for just a second. I want all Canadians to think about that as well. The finance minister, who is arguably the second most influential person in Canada with respect to setting economic and fiscal policy, will not say when the budget will be balanced. More troubling is that he cannot because he does not know. The finance minister of Canada does not know when this country might return to balanced budgets. That is far more alarming to me than any pronouncement that any finance minister has made in recent history.

I could have understood if the finance minister would have said that he did not see the country returning to a balanced budget in the next five to 10 years or perhaps even in the next 15 years because of the economic and fiscal direction the government wished to pursue. However, it is more than just troubling for the finance minister to admit that he does not know when the country will return to a balanced budget because he cannot project that far into the future.

All Canadian taxpayers should think about that long and hard, and I hope they do. I hope that come October, they will remember this broken promise. Our country deserves better than a finance minister who does not know when his own budget might be balanced. It is almost unconscionable for a man in his position to admit that, yet that is the case before us.

It is not just the fact that the Liberals broke a promise on omnibus bills and their introduction in Parliament. It is not just the fact that they promised only modest deficits, and they have broken that promise. The Liberals have broken promises on things like electoral reform. They have broken promises on elements such as supporting the oil and gas sector in Canada, something on which the Liberals have deliberately, in my view, misled Canadians.

Let me give a couple of examples of what I say and what I mean by not supporting the oil and gas sector. Almost immediately upon forming government in 2015, the Liberal government killed northern gateway, a project that if it were up and running today, would be bringing untold billions of dollars to the Canadian economy and increasing the price of oil that we could have sold on the world market. However, the Liberal government unilaterally killed a project that had previously been approved by the National Energy Board.

In addition to that, the Liberal government, looking at the proposed energy east project, changed the regulatory provisions contained in the legislation and made upstream and downstream emissions something that had to be considered by the NEB, to the point where TransCanada pulled completely out of that project. That project, which could have been a nation-building project, delivering oil from western Canada to the east coast to their refineries to reduce our dependency on foreign oil, because of the Liberal government, was killed.

What is left? It is the infamous Trans Mountain Kinder Morgan project. The Liberal government has no intention, in my view, of following through on its promise to get that built. Right now, again in my opinion, the Liberal Party is simply doing electoral calculus on how many votes it can gain by not committing to completing this project before the next election. If the Liberals feel they can get more votes in British Columbia and Quebec by stopping this project, then that is what they are going to do.

This is nothing more than a political exercise, but the collateral damage is Canadians, particularly in western Canada, in my province of Saskatchewan and my neighbouring province of Alberta. The energy-producing provinces of the country are the collateral damage of the Liberal government's refusal to honour a promise.

Last but certainly not least, I would point out for all Canadians who may be listening to this debate what the Liberals did with the SNC scandal, as it is now known. The budget implementation bill included, buried deep within that bill, a provision that would allow the government, should it so wish, to introduce something called a DPA, a deferred prosecution agreement. The Liberals did that because the government had been lobbied extensively by SNC-Lavalin and they thought that by introducing it in the bill, it would allow the prosecutors office an opportunity to offer a DPA to SNC-Lavalin. That did not happen, and we know what the results were: the biggest scandal in Canadian political history in the last three decades, which resulted in the former attorney general of Canada resigning, because of the inappropriate pressure put on her by the government, and in the former Treasury Board president resigning in protest over the government's handling of that very key element of the budget implementation bill.

I could go on for quite some considerable time, but I have limited time before me. Let me just conclude by going back to my opening remarks when I said that in my opinion the government did not deserve to be re-elected. I can assure the House and anyone else who may be listening to this debate that in slightly less than six months, Canadians will be able to prove my prediction to be quite accurate.

The House resumed consideration of the motion that Bill C-97, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2019 and other measures, be read the second time and referred to a committee, and of the amendment.

Royal Assent

[Jenny Kwan, NDP, Vancouver East, BC]

Mr. Speaker, if you seek it, I think you will find unanimous consent for the following motion: That notwithstanding any standing order or usual practice of the House, that Bill C-97, an act to implement certain provisions of the budget tabled in Parliament on March 19, 2019 and other measures be amended by removing part 4, division 15 and 16 on immigration, citizenship and refugee protection; that these divisions compose Bill C-98; that Bill C-98 be deemed read a first time and be printed; and that the order for second reading of the said bill provide for referral to the Standing Committee on Citizenship and Immigration; that Bill C-97 retain the status on the Order Paper that it had prior to the adoption of this order; that Bill C-97 be reprinted, as amended; and that the law clerk and parliamentary counsel be authorized to make any technical changes or corrections as may be necessary to give effect to this motion.

[Jenny Kwan, NDP, Vancouver East, BC]

Mr. Speaker, in a moment I will move a unanimous consent motion.

Bill C-97 contains two significant immigration provisions that should not be part of an omnibus budget bill. Over the weekend, some 2,600 Canadians wrote to me to condemn this action. Addressing the issue of crooked consultants is not a budget bill, and closing the door to asylum seekers looking for protection here in Canada should not be hidden in an omnibus budget bill. This is an affront to the work of parliamentarians and—

Immigration, Refugees and Citizenship

[Jenny Kwan, NDP, Vancouver East, BC]

Mr. Speaker, Amnesty International raised the alarm about the Liberal shift in public policy to cater to the alt-right.

In Central and South America, sexual violence is rampant. Children as young as seven are faced with forced recruitment, yet the alt-right is vilifying refugees. They call it white nationalism. The Minister of Border Security is feeding into it by calling refugees asylum shoppers. With Bill C-97, they cannot even apply for protection in Canada.

If the Liberals have the courage to stand by the right to remove, will they table those changes as a stand-alone bill in the House?

Second reading

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I am very pleased to rise today. Before I begin, I would like express support for those of my constituents who are experiencing extreme flooding and for the people of Sainte-Marthe-sur-le-Lac, who are facing major challenges.

Today, I am honoured to have the opportunity to talk about our government's plan to invest in the middle class and create an economy that works for everyone.

The purpose of Bill C-97 is to implement key measures in the 2019 budget. Canadians can see that they made the right choice. Canada's economy is now among the most dynamic in the G7. Canadians have created over 900,000 jobs, and middle-class families are better off. The economy is stronger; more good, well-paid, middle-class jobs are available; and people working hard to join the middle class are getting more help. People of all ages can be proud to live and work in our economy.

As we all know, Canadian seniors have contributed a great deal to their communities throughout their lives. They have a wealth of knowledge, experience and skills that they can continue to share.

Budget 2019 recognizes the contribution that seniors have made, and we are showing our support for them by investing in their well-being. Unlike the previous government, which wanted to raise the age of retirement, our government made a commitment to help seniors. Budget 2019 helps seniors get actively involved in society, including taking paid work if they wish, and will help them transition to retirement when they decide to leave the workforce.

Furthermore, we want to make low-income seniors more financially secure if they decide to remain in the workforce. Our government understands that many seniors choose to remain in the workforce after retirement. Some do so to maintain social ties to their communities, while others like earning extra income to spend on their children or grandchildren. Some simply love what they do and want to continue doing it, which is good for our society. No matter the reason, we all benefit from their skills.

Sadly, some seniors are penalized for choosing to stay at work. The government reduces their guaranteed income supplement benefits or allowance for every dollar earned over the annual GIS earnings exemption of $3,500.

Self-employment income is not eligible for the exemption under existing law. That means they lose their hard-earned income. The bill we are debating today would fix that problem. It would allow seniors to keep more of their GIS benefits or allowance and more of what they earn by enhancing the GIS earnings exemption beginning with the July 2020-21 benefit year.

This measure would extend eligibility for the earnings exemption to self-employment income. It would increase the amount of the annual exemption from $3,500 to $5,000. This measure includes a partial exemption of 50%, to apply on up to $10,000 of annual employment and self-employment income beyond the $5,000 threshold. That means eligible seniors could get a full or partial exemption on up to $15,000 of income. In Rivière-des-Mille-Îles, this measure will change seniors' lives. Seniors who want to continue working will be able to keep more money in their pockets.

We also want to empower seniors in their communities. Our government recognizes that not all seniors can or want to remain in the workforce. We know that those who retire often face isolation in their retirement years, a situation sometimes made worse by ageism, poor health, reduced mobility, poverty and even abuse. Fortunately, we can help improve matters.

My colleagues are surely aware of the new horizons for seniors program. It seeks to eliminate barriers to inclusion and mobilize seniors within their communities with initiatives ranging from new equipment for seniors centres to financial literacy classes and volunteer opportunities, to name just a few.

I have some examples from the riding of Rivière-des-Mille-Îles, from Deux-Montagnes, Saint-Eustache, Boisbriand and Rosemère. The Heritage Social Club received $25,000 to renovate its roof. Four Corners received $23,000 to convert their facilities. There is also the Centre d'action bénévole, the Cœurs joyeux club in Saint-Eustache, the Centre d'entraide Racine-Lavoie, and the Maison des citoyens in Deux-Montagnes. There are many examples of organizations like these that are changing the lives of our seniors.

Budget 2019 proposes significant additional funding of $100 million over five years and $20 million every year thereafter for the new horizons for seniors program. This additional funding will ensure that the program can continue to improve seniors' quality of life and better promote the participation and inclusion of older Canadians in their community and their workplace.

One more thing we are doing for seniors is making sure that those who are entitled to Canada pension plan benefits receive them. Isolation can have real consequences for seniors, including financial ones. Isolation or a lack of support are among the reasons why some seniors are late in applying for their pension or do not apply at all. They miss out on receiving their CPP benefits.

The CPP is a key pillar of Canada's retirement system. It provides retired Canadians with a secure, predictable income and peace of mind. Canadian workers currently need to apply to receive their CPP benefits. To help Canadian workers receive the full value of the CPP pension to which they contributed, the 2019 budget implementation bill would proactively enrol CPP contributors who are 70 or older in 2020 who are entitled to their pension. If they have not yet applied, they will receive their benefits. We will make sure that all seniors receive the CPP benefits they are entitled to.

We want to protect Canadians' pension plans. Budget 2019 goes even further so that those who contributed to a pension plan actually receive their benefits. Measures set out in this budget will ensure that the employer's defined benefit plan offers a stable and secure income and the dignified retirement Canadians expect after a lifetime of hard work.

In recent years, we have seen how the security of some private pension plans is put at risk when an employer goes bankrupt. In order to give Canadians greater peace of mind about their retirement, the budget implementation bill proposes new measures to enhance the security of workplace pension plans in the event that the company goes bankrupt.

The measures proposed in Budget 2019 will make insolvency proceedings fairer, more transparent and more accessible for pensioners and workers. They will set higher expectations for, and better oversight of, the behaviour of federally incorporated firms. They will strengthen pension security and the viability of federally regulated pensions.

In summary, for our seniors, the 2019 budget proposals build on our government's strong record of ensuring retirement security for Canadians so that they can enjoy the dignified retirement they deserve after a lifetime of hard work. These proposals are also an important part of our government's plan to create an economy that works for everyone, including seniors.

There is one more very important thing in budget 2019. Our government is introducing the Canada training benefit, a new tool that will help working Canadians find the time and money to upgrade their skills and progress in their careers.

The benefit will enable working Canadians to take four weeks of training every four years and will provide up to $1,000 to help pay for training. The income support will help them cover loss of income. They will have the security of knowing they have a job to come back to when their training is done.

The bill before us proposes the first phase, the Canada training credit. For people who are currently in school, budget 2019 is also investing in 84,000 new work placements per year to help young people acquire new skills and build their resumés.

In closing, Canada's labour market and economy are evolving. With budget 2019 and Bill C-97, we are helping students and workers of all ages prepare for good jobs now and in the future.

[Lorrie McKee, Director, Public Affairs and Stakeholder Relations, Greater Toronto Airports Authority]

Thank you very much, Madam Chair, and thank you for your time and attention.

My name is Lorrie McKee. I am the director of public affairs and stakeholder relations for Toronto Pearson. I'm here with my colleague, Greg Owen, who is the associate director responsible for government agency programs.

Toronto Pearson has been a long-time advocate for changes to address the challenges in the current model for CATSA. As several of my colleagues have mentioned, we have never questioned the safety or security provided by CATSA. In fact, we applaud CATSA leadership and the front-line employees for the security screening service that they provide.

However, the lack of multi-year funding to properly plan and accommodate growth and to invest in new technologies and new requirements added to CATSA's mandate over the years without additional funding has led to globally uncompetitive wait times, flight delays, missed connections and inconvenience to passengers. This threatens Canada's economic objectives, making our country less attractive to foreign direct investment, tourism and trade.

Toronto Pearson is Canada's largest airport. Last year, it processed almost 50 million passengers, making it the ninth-busiest airport in North America, the second for international traffic, and the fifth most-connected airport in the world. CATSA screened approximately 20.5 million passengers in 2018.

Given the hub role that Pearson plays to connect travellers to other Canadian cities and countries around the world, how security screening is delivered at Pearson matters to Canada's economy and this country's desire to diversify trade and grow jobs.

For many years, the allocation model has meant that CATSA at Toronto Pearson has received insufficient funds to deliver a global competitive level of service. Since the fall of 2014, the GTAA has worked with CATSA to purchase additional screening services to reduce wait times. In 2018, we invested $10.7 million to support security screening. This, combined with additional investment by the government in CATSA, has improved the situation.

However, wait times during many peak travel times remain globally uncompetitive. We therefore welcome this governance change to an industry-led, non-profit entity.

We are committed to working with our colleague airports and leaders in the airline sector to stand up this new entity. Like the airport authority model, we believe that a non-profit commercial model will allow security screening to be delivered in a more globally competitive manner with a clearly defined regulatory regime applied by Transport Canada.

International travellers have come to expect a better travel experience. Hong Kong, Heathrow and other global airports have proven that it is possible to maintain security and process 95% of passengers in five minutes or less.

With respect to division 12 of Bill C-97, we're generally supportive of the text as introduced. There are two changes that we propose.

The first is removal or clarification of the charging principle in paragraph 26(1)(d), which provides “that charges may be used only to recover costs for security screening services”. It appears to preclude raising funds to support any investments in innovation or process improvements, which has historically been an issue for CATSA under the appropriations model. We note that there was no similar charging principle when Nav Canada commercialized.

The second is that, for added clarity and flexibility with respect to the imposition of charges on passengers or other persons required to undergo security screening, subclause 24(1) should be amended to add “and/or” so that the option exists for the new entity to introduce a charge for non-passenger screening, but that it's not considered mandatory.

With respect to the setting of charges, the new entity will be limited to increasing charges at or below the rate of inflation. Larger increases are possible, but only following a public process and review by the Canadian Transportation Agency. While we appreciate the rationale for this process, we also would like to point out that such a restriction on the setting of charges may have an impact on the ability of the new entity to raise funds cheaply.

Finally, with this shift to a commercially based security screening service, we suggest that the government capitalize on this opportunity to work with industry to simplify the regulatory framework for security screening. We understand that a similar exercise was undertaken at the time of the Nav Canada commercialization and was an important step in enabling the new entity to establish itself quickly with the confidence of all stakeholders, including the financial markets.

Thank you. I'd be pleased to take any questions.

The House resumed from April 12 consideration of the motion that Bill C-97, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2019 and other measures, be read the second time and referred to a committee.

[Robert Aubin, NDP, Trois-Rivières, QC]

The new structure Bill C-97 would put in place would generate efficiencies of $40 million at least—and we've only talked about one problem.

Would we, through privatization—because finally, that is really the term—reach these enormous efficiencies of scale that would allow you to recover $40 million, by reducing employees' salaries or reducing personnel, for instance? Where would you go and get that?

[Ferio Pugliese, Senior Vice-President, Air Canada Express and Government Relations, Air Canada]

Good morning, honourable Chair and members of the committee.

Good morning everyone.

My name is Ferio Pugliese. I am the senior vice-president of Air Canada Express and government relations.

First I want to thank you for giving us the opportunity to appear before you today.

I'm here before you today to discuss what we believe, if done right, to be one of the single most important changes to air transportation in Canada since the devolution of airports.

The proposal to create a new designated screening authority, DSA, to replace CATSA in Bill C-97, comes after years of industry and public requests to improve the system, based on thoughtful examination by airlines, airports and the travelling public. Transport Canada has been supportive of our work in this area, and we're pleased to see significant movement in this regard.

Before I dig deeper into the topic of the new screening authority, I'd like to share with you a bit of context about Air Canada.

Just over 10 years ago, coming off the verge of bankruptcy, Air Canada embarked on a vision to transform itself into a Canadian global champion. Last year, we served over 51 million passengers, a 65% increase since 2009. We now serve 220 destinations across six continents, having added 120 new routes in the last five years alone. Based on our growth, our three main Canadian hubs now rank in the world's top 50 most connected international cities. Aside from Canada, only the United States and China, the two largest markets for air service, have three or more cities in this select ranking. Air Canada remains committed to advancing this vision.

Recent economic impact studies by KPMG and InterVISTAS have identified our total economic output to be $47 billion, including a net impact of $21 billion to the GDP of Canada and over $1.9 billion in direct tax revenues to governments.

Our 36,000-member team, 6,000 of whom were hired only in the last three years, support this growth, and without these dedicated individuals we could not deliver our product to our customers. In total, our operations support 190,000 jobs across our country. Our commitment to serve communities and customers underscores our vested interest in ensuring that CATSA reform meets the needs of the industry, and most importantly the travelling public.

A new model is necessary to improve efficiencies and reduce wait times, delayed departures and missed connections for travellers. Current inefficiencies have resulted in lost economic opportunities and contributed to a worsening perception and inferior travel experience for customers travelling through and within Canada.

While this reform is welcomed, Air Canada cautions that in order to get it right, it must be done in a thoughtful, well-planned and fiscally responsible manner. We encourage the committee to take the time required to coordinate and have thoughtful consultation from all parties.

We're concerned by the provision that allows for the sale of CATSA assets to the new DSA and the impact it will have on the cost to travellers. We do not support having the balance sheet of a new entity that is burdened with long-term debt in the transfer of assets. It is suggested that these assets will be transferred at a negotiated value, of which the new entity will need to use operating revenues derived from rates, fees and charges to not only cover operating expenses but to also service its newly acquired significant debt.

The consequences are simple: increased cost of travel and reduced funding for necessary investments in technology, processes and practices. We have one opportunity to do this right, and the closest proxy we have to this is the government transfer of the air navigation system to NavCan back in 1996, which was done with adequate time and consultation. We suggest a similar approach with CATSA reform.

Finally, I wish to highlight and remind the committee that air transport is also undergoing the most active, dynamic period of regulatory reform since the early 1990s. Among other reforms, industry is currently working with government to finalize the air passenger protection regulations, APPR.

Government's timelines on this policy are simply not realistic, and quite frankly are irresponsible, for the following reasons: rushed implementation without consideration of operational realities leading to unintended consequences; policy based on flawed and inaccurate regulatory impact analysis statements; and, air travel, again, that will get more expensive and less accessible for Canadians.

Finally, our airline, along with others, is facing one of the most significant challenges the industry has faced since 9/11: the grounding of the Boeing 737 Max. As a result, resources are fully dedicated to managing schedules, preserving service and managing route suspensions. While our team has done an excellent job in recovering our operations, the strain on resources is significant, leaving little capacity to deal with other issues.

As well, a significant level of resources is needed as the airline prepares customers and operations for the eventual re-entry of service.

To top that, the industry is now being asked to embark on a significant CATSA reform at an expedited pace. To suggest that complex negotiations begin in short order is undermining not only to the industry, but to the travelling public, and will lead to inferior outcomes.

Before we embark on the next stages of CATSA reform, we implore you to consider the following recommendations: First, allow this industry to get past the Max grounding. Second, delay the implementation of the APPR to provide for more and much-needed consultation. Third, in the coming months, allow airports and carriers enough time to consider how to create an industry-leading screening authority that begins with the transfer of assets at a nominal value.

Air Canada supports this CATSA reform, done right, which means that consultation and careful consideration of legislation must take place. This cannot be done with the introduction of provisions in the budget omnibus bill where we have virtually no ability to make changes.

[Howard Liebman, Senior Director, Government and Community Affairs, Air Transat]

Good morning.

Thank you, Madam Chair and members of the committee.

My name is Howard Liebman. I am the Senior Director of Government and Community Affairs, and I represent Air Transat.

By way of introduction, I want to express support for the presentation of our association, the National Airlines Council of Canada, and thank our president and chief executive officer, Massimo Bergamini, for his testimony.

Air Transat is the second largest international passenger airline service in Canada. It is based in Montreal and also has secondary bases in Toronto, Vancouver, Calgary and Quebec; it provides airline services at over 20 transit points in Canada, toward 65 popular destinations, with a fleet of 35 large commercial carriers and over 3,000 dedicated on-board staff throughout the country.

In 2018, we transported more than four and a half million passengers, and our commitment to service excellence was recognized when we were chosen as the recipient of the Skytrax award for best leisure airline in the world.

We are currently transitioning to an all-Airbus fleet, with the imminent arrival of our first, and North America's first, fuel-efficient Airbus A321neo long range.

This commitment to serving and providing the best possible experience to our passengers has been part of our collective DNA since we first flew in November 1987.

Airport security screening is a vital component of the overall aviation ecosystem. There is no alternative for all stakeholders—for travellers, air carriers, airports and government—but to get this right.

We take note of the comments you just heard from the airlines council that omnibus budget Bill C-97 has raised crucial questions in such areas as funding and governance and that, consequently, it is imperative that this process not be rushed.

Air Transat stands ready to marshal our three decades of expertise to engage constructively on this, and we underline that this process merits the full attention of this honourable committee, to ensure that Canada maintains a safe, efficient and productive airport security screening system. We're instructed by the precedent of the commercialization of air navigation services in Canada, and are mindful of the roughly two-year timeline in establishing Nav Canada.

I will close my opening statement by taking a step back to share with you some important context. As our industry engages in this process with the necessary expertise and resources, it is imperative that this committee appreciate the breadth and magnitude of concurrent regulatory initiatives targeting the airline industry. They include air passenger protection regulations, new pilot flight duty time regulations, clean fuel standards and related environmental initiatives, accessibility regulations, consultation on equal remuneration for federally regulated contract workers in the air transport sector, and more.

I wish to underline that this is in no way a critique of any of these important initiatives. On the contrary, the industry is deeply engaged on each one. The point here—and it's a crucial one—is that all of these significant regulatory changes are happening in parallel. In addition to the overriding imperative of safety and security, which must never be compromised, there is a capacity issue to ensure all stakeholders get this right.

Let us not lose sight of the fact that the airline industry is an economic locomotive for the Canadian tourism industry and, indeed, for the entire Canadian economy. The individual and cumulative costs of these regulatory initiatives—borne by users, by the industry, but let's face it, ultimately by travellers—must be fully considered.

Thank you very much, Madam Chair.

[The Chair (Hon. Judy A. Sgro (Humber River—Black Creek, Lib.)), Liberal, Judy Sgro]

I call the 139th meeting of the Standing Committee on Transport, Infrastructure and Communities to order.

Before we go on to today's agenda, I have two study budgets that I need support from the committee for adoption: $15,200 for Bill C-97; and $1,500 for a study of American-plated vehicles, which your colleague requested we look at.

All those in favour of the two study budgets that are before us?

[The Chair, Liberal, Rob Oliphant]

No. I can clarify that for the committee.

First of all, the Speaker ruled this afternoon that the provisions around omnibus bills do not apply to this bill because it is a budget implementation bill. The Speaker has ruled that this is an appropriate bill. The second is that even though the finance committee has requested us to study division 15, if this committee chooses to study both divisions 15 and 16, a report can be made on each of those divisions and go to finance. Any amendments that we would be proposing would be deemed notice having been given by the time that Bill C-97 reaches clause-by-clause in committee.

We don't need a request from the finance committee to do this. It could have done so. It requested that we do division 15. We are now telling them that we are also doing division 16—