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, the question from the member opposite raises really good questions about how we have a timely and well-trained workforce in today's society.

As I noted in my comments, I had discussions with local business groups, such as the Greater Langley Chamber of Commerce. The members there indicated that they struggle with a workforce that is keeping track and on top of the current job requirements. There are existing training programs, many of them delivered through the provinces and territories, as my colleague noted.

However, federal funding flows through to the provinces and territories and supports much of this retraining. The program we are discussing is another example of that. It is an opportunity for the federal government to support businesses and Canadians in order to keep their skills relevant. Instead of having to take time off, not knowing if they will be coming back to an employer, this provides support for those skills through the employment insurance program.

The business community was also very interested to hear that there will be employment insurance relief for small businesses to support this new program. I think everybody will be very delighted as more details become available.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Speaker, I want to thank my friend and colleague from British Columbia. We work together on tourism-related issues. He knows full well the impact the chinook closures are having on coastal communities and fishers in our communities, especially the troll fleet and sport, indigenous and recreational fishers. The minister made this announcement and showed up empty-handed. He had a tool in his toolbox to help support fishers by extending EI and providing compensation to the commercial fleets, which are getting nothing.

The government has been sitting on $17 million of Pacific salmon treaty money, which was meant to compensate area G trollers. That still has not rolled out the door. They have not received the restoration and enhancement money the government promised through the coastal restoration fund. It was a drop in the bucket. The government announced funding for southern resident killer whales. It made announcements in the fall economic update for enhancement and restoration funds.

We are not seeing that money. In fact, the government has not spent the $63 million that was scheduled to be spent in the oceans protection plan in 2017-18. It is not getting the money out the door. Communities do not have confidence that the government has their backs and is in their corner.

What is the member going to do to help get this money out the door, support these communities and encourage the minister to use every tool he has to help support the communities that are being affected by these closures?

The Liberals talk about the balance of the environment and the economy. They have spent $4.5 billion on a leaky pipeline and $1.6 billion subsidizing oil and gas. It is time they invested in coastal communities and in our salmon. As a British Columbian, I hope he will step up and make sure he puts pressure on the Prime Minister and cabinet to do something urgently.

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

Mr. Speaker, I thank my colleague from B.C. for his advocacy for our west coast fisheries.

I note that the member discussed many of the great programs our government has funded and rolled out. It is a level of investment that has been needed for many years.

Yes, there is always a frustration with programs not being designed and implemented as quickly as possible, so I would offer this in response to his question.

All members in this House want to see the west coast fishery and fish stocks survive for the long term. Therefore, we will work with our government to make sure these programs and their funding are delivered to those who could make a difference with respect to these very important issues in British Columbia and for Canadians.

[Sean Casey, Liberal, Parliamentary Secretary to the Minister of Fisheries]

Mr. Speaker, it is a pleasure to rise to speak to Bill C-97, the budget implementation act. I had hoped to have an opportunity to speak to the budget itself, but that of course was denied as a result of the filibuster by the member for Carleton.

It is a very good budget for Prince Edward Island, and it is a long time coming.

During the Harper years, we were particularly hard done by in our province and in our region. Throughout the Harper years, we saw disproportionate cuts to the civil service. We saw cuts to the employment insurance program, which is so very important in seasonal economies such as the one in Prince Edward Island.

We saw the closure of Veterans Affairs district offices, and this is something near and dear to my heart as the member of Parliament for Charlottetown. Charlottetown is the only place outside the national capital region that has a national headquarters of a federal government department. We are immensely proud that the national headquarters of the Department of Veterans Affairs is in Charlottetown, so it was particularly troubling to see that district office close. However, we fixed that.

Also during the Harper years, we saw the closure of the citizenship office. Prince Edward Island was left as the only province in Canada without a citizenship and immigration office at a very time when immigration levels in our province were increasing to the point where we now have the highest per capita immigration in the country. However, we fixed that closure of the immigration office.

We went through a period in the Harper years of the slowest economic growth since R. B. Bennett. We fixed that. We saw an accumulation of $160 billion in new debt during the Harper years, and high unemployment.

In Prince Edward Island, there is an old adage that our economy is somewhat different. We are not subject to the swings we see in the rest of Canada. Therefore, when the economy goes in the tank, it does not dip as far in Prince Edward Island, and when the economy is on fire, it does not excel as much as it does in the rest of the country. Part of that could be because of the seasonal economy. Part of that could be because, until recently, there has not been a lot of industry outside of the seasonal economy. The government sector is quite important. The university sector has been quite important. We have seen that change.

This economic boom, this period of unprecedented growth that we have not seen since the pre-Harper years and that we are experiencing right now, is different. Prince Edward Island is not only sharing in that growth; in many categories we are leading the country. We are leading the country with respect to increases in retail sales. We are leading the country with respect to economic growth. We are leading the country with respect to immigration growth. It has been said that the Prince Edward Island economy is on a tear. That is due in no small part to the economic policies of this government.

Immediately upon being elected, this government brought in the Canada child benefit. I mentioned earlier the pride we have over the fact that there is a national headquarters for a federal government department in Prince Edward Island. The payroll at the national headquarters of the Department of Veterans Affairs is $100 million a year, and $100 million a year is very important to the economy of Prince Edward Island.

Just to get a sense of the importance of the Canada child benefit, which was introduced immediately after our election, the amount of money that is brought into Prince Edward Island through the Canada child benefit is $100 million a year, the same as the payroll at the national headquarters. The difference between the Canada child benefit and the payroll at Veterans Affairs is that the Canada child benefit is tax free. That is one factor. There are multiple factors in the success of the P.E.I. economy in recent years, but one of them is the economic policies of this government.

In a certain sense, we have also become victims of our own success. We share in the national housing crunch. The vacancy rate in the riding I am proud to represent is 0.3%. That is in part because of our growing population and the proliferation of Airbnbs. It is in part because there is so much construction happening around Prince Edward Island that it is very difficult to get tradespeople, in part because of our sky-high tourism numbers and in part because of the seasonal economy, which makes Airbnb particularly attractive.

I indicated that we have in a sense become a victim of our own success. That is also the case with respect to labour shortages, which is why programs like the Atlantic growth strategy and the Atlantic immigration pilot have been so very important. It is also why programs like the Canada training benefit, included in this budget, will be very important to us.

That success has also exerted a strain on our health care system, where it has become harder to get a family doctor. Fortunately, this budget also includes increases to the Canada health and social transfer, which will go some way to alleviating that pressure.

This budget will allow Prince Edward Island to continue its impressive record. As I indicated, with respect to housing there is a 0.3% vacancy rate. There are substantial initiatives in the budget to address the housing crunch in this country, including measures to make housing more affordable for first-time homebuyers, including the retail finance initiative. These are all measures that are welcome and necessary, and for once they are measures that are important for a province that is sharing in the economic success we have seen.

Under the reaching home strategy, a $3-million award, administered through the John Howard Society, was recently announced to tackle homelessness in Prince Edward Island. As I indicated with the rock-bottom vacancy rate in our fair province, this is desperately needed. The good people at the John Howard Society and the board that examines the proposals to attack homelessness are to be commended and supported. This investment will no doubt lift them up.

The other thing I want to mention with respect to housing is something that was specifically mentioned in the budget. It is not very often that Prince Edward Island gets a specific mention in the budget, but there were at least a couple. One was with respect to new ferries for the passage from P.E.I. to Îles de la Madeleine and for the passage from Caribou Island in Nova Scotia to Wood Islands in Prince Edward Island. This is something that really has been the life's work of the hon. member for Cardigan.

On the housing front, there was specific mention of a $50.8-million public housing project in Prince Edward Island. This public housing project is designed for people with complex multiple needs: social, medical and psychological needs. In part, this investment will replace the aging Hillsborough Hospital, but it will be much broader than that. It is an indication of where the government's heart and head are in supporting those who are most vulnerable and providing for those battling mental health, addictions and complicated problems.

I want to close by mentioning two other specific things in the budget. There was specific mention of the Confederation Centre of the Arts. The Confederation Centre of the Arts was built as a monument to the Fathers of Confederation back in 1967. This budget included a $500-million annual increase to the operating budget of the Confederation Centre of the Arts.

The cultural industries are so important to my province, so important to my riding and so important to this country. I am proud, as a Prince Edward Islander, to be able to support this budget.

[Blaine Calkins, Conservative, Red Deer—Lacombe, AB]

Mr. Speaker, the Minister of Fisheries, Oceans and the Canadian Coast Guard recently announced a chinook salmon closure all around Vancouver Island. Depending on who one listens to, that closure, which seeks to change the return rate of chinook salmon in the Fraser River from 90% to 96%—a very marginal increase in return, and one that was not necessarily needed—is going to result in anywhere from $200 million to $500 million in economic damage to fishers and those who depend on the sport fishing industry around Vancouver Island.

I am wondering if the parliamentary secretary can point to some place in the budget where these people, some of whom are about to lose their livelihoods some of whom about to lose a whole summer's worth of work, can see what compensation they will be getting.

[Sean Casey, Liberal, Charlottetown, PE]

Mr. Speaker, I would like to thank my colleague for his excellent work on the fisheries committee.

The challenge around chinook salmon is certainly a vexing one for this government. We are constantly trying to ensure the protection of our oceans and our biodiversity and the protection of aquatic species at risk while trying to minimize the economic impacts on marine industries.

Protecting the species is a responsibility that is shared by all Canadians. Protection of the stocks in British Columbia is a priority for our government. We recognize the declining status of these populations and their importance. That is why these measures are necessary. They are responsible and science-based, and they are done in consultation with all of the stakeholders involved.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Speaker, I think the member can agree that there has been mismanagement of our fish stock by consecutive governments, and as a result they have had to make bold decisions around the closure of the chinook salmon stock.

We have not talked enough about the commercial fleet. In fact, the salmon trawlers are deeply affected by this closure. The closure for them will be extended longer than the closure of the sport sector, all the way until August 20. That is a long period of time without EI or any compensation. The minister has not—

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

The hon. member for Calgary Shepard is rising on a point of order.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Mr. Speaker, I hate to interrupt the member for Courtenay—Alberni, but he has an important question, and there is so much noise from the antechamber around us from people speaking very loudly that I cannot hear the member speaking in the House. I am interested in hearing both the question and the answer.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

That is a very good point. It just suddenly started, as it was quiet earlier. The Sergeant-at-Arms is now looking into the noise to make sure that it stops. I would venture a guess that those outside the chamber can hear our voices, so I will ask them not to talk as loudly or to whisper.

I thank the hon. member for Calgary Shepard for bringing that up.

The hon. member for Courtenay—Alberni.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Speaker, I will start again.

I want to bring the Parliamentary Secretary to the Minister of Fisheries, Oceans and the Canadian Coast Guard back to the conversation around chinook salmon and the announced closures, the difficult and bold decision that the government had to make because of mismanagement by consecutive Conservative and Liberal governments, especially a decade under the Harper government, which gutted fisheries protections, cut jobs for science and muzzled scientists. This has had a huge impact on the chinook salmon fishery.

I want to focus on the commercial fleet. The commercial fleet has not been getting any sort of compensation or help from the government since the announcement of the closure for the commercial fleet, which continues until August 20. That is a long time without any support for families to trying to make their mortgage payments or keep their boats afloat. There was money put aside, $17 million, that is still sitting in the Pacific salmon treaty fund that has not been used to compensation Area G trawlers specifically.

We are looking for the parliamentary secretary to tell coastal people what Liberals are going to do in terms of their tool box. Are they going to go to communities and my riding, look fishers in the eye and tell them that they are not going to do anything for them, that they are just going to leave them high and dry for the summer, or are they going to make sure they show up and help them get through this very difficult time?

I urge him to do that.

[Sean Casey, Liberal, Charlottetown, PE]

Mr. Speaker, as I indicated earlier, we know that the closure of any commercial or recreational fishery has a direct impact on communities.

The member was quite right when he talked about the cuts to science under the Harper Conservatives. We have hired 29 new scientists in the Pacific region, and starting this year we will invest over $100 million over five years, and $17 million per year in ongoing support for fisheries stock assessments and rebuilding provisions. Substantial investments are being made.

This is a challenge. It is one on which we are getting the best science advice, and one on which we are doing our level best to consult with all of those who are impacted, including the fishers, indigenous communities, and provincial and territorial governments.

[Karen Vecchio, Conservative, Elgin—Middlesex—London, ON]

Mr. Speaker, the government was proud to put forward its budget on March 19, but what Canadians got was another budget absolutely filled with another huge deficit.

As noted by Ian MacDonald, editor of Policy Magazine:

For [the] finance minister..., the budget was an opportunity to move on from a legacy of broken promises—he pledged $10 billion a year of deficits over four years to balance the books by 2019. Four years later, the projected cumulative deficit from 2016 to 2022 is more than $100 billion, with balance nowhere in sight....

Today I am going to focus my remarks on the current economic climate in Canada, specifically in relation to the housing markets and the government's drive to continue to spend, spend, spend.

Across Canada, there are many thoughts about when to run a deficit and when to increase the national debt load. In my riding of Elgin—Middlesex—London, I recently did a survey. In it, over 90% of my constituents said they would like to see a balanced budget in the near future.

I recognize that there is a time for deficits and there is a time to ensure that our economy is strong, but we have a Prime Minister and a finance minister who do not seem to use the same philosophy as many economists.

There is a big question here, and it comes down to the word “affordability”. I checked the Cambridge Dictionary for its definition, because affordability is going raise big questions as we move into the 2019 election. According to the Cambridge Dictionary, affordability is defined as “the state of being cheap enough for people to be able to buy”.

In its budget, the government brought forward two specific programs focused on first-time homebuyers, trying to find something to make sure that housing was more affordable. First the government increased the RRSP withdrawal amount for homes. Previously, people could remove $25,000, and that has been increased to $35,000. Second, the government introduced the first-time homebuyers incentive.

With respect to the first measure, I have had the opportunity to speak to many real estate agents from LSTAR and the Canadian Real Estate Association. For several years, they have been asking the government to increase the RRSP amount to $35,000. Although I totally agree with that, we have to recognize that right now Canadians are being nickel-and-dimed. They do not have extra money to put into RRSPs so that they can take out more money when buying a home.

This is a huge concern for me. We are talking about affordability here, but people are going home with less money from their paycheques. Canadians are paying more into the Canadian pension plan. They are also now paying the newly introduced carbon tax, especially in the province of Ontario. When I was driving last week, I noticed that Canadians are now spending up to $1.60 a litre on gasoline.

Canadians cannot afford what the government has to offer. Saving money in an RRSP is truly not an option for Canadians.

The government also put forward the first-time homebuyers incentive. Earlier today, a PBO report came out, and I want to read its findings into the record. It noted:

Estimation and projection method:

The cost of the program reflects the cost of borrowing $1.25 billion over three years. CMHC would borrow $250 million in 2019-20, and $500 million in both 2020-21 and 2021-22.

The estimate was calculated using PBO marginal effective interest rate projections on Government of Canada borrowing.

The uncertainty assessment is the key here, and this is what the PBO reported in that respect:

The estimate has high uncertainty. Many of the details relating to the program have yet to be determined or published, therefore many assumptions are used. We assume no credit losses on debt; no gains or losses in the equity holding; 100% of the loans are administered at the beginning of the fiscal year, except in 2019-20 (September 1); the portfolio is fully dispersed at all times, that is, any principal repayments are immediately redistributed to other eligible buyers.... The estimate is sensitive to changes in interest rates, which can vary over time. There is insufficient information on the program to quantify a behavioral response.

This is similar to what my colleague said earlier. It is as if Liberals come up with some of these plans on the back of a napkin. When coming forward with plans, they should be asking how things are actually going to pan out and what we will get in the long run.

Douglas Porter, who members may know is from BMO, has indicated:

The program will only apply to those with household income below $120,000, and with a maximum mortgage and incentive amount of 4-times income. As such, the impact will be contained to the lower end of the market below roughly $500,000 and, arguably, that’s the level where affordability challenges only really begin.

He provides an example here. He notes that the first-time homebuyers incentive looks great on paper, but we have to understand the reality of the markets in both the greater Vancouver area and the greater Toronto area.

One cannot find an average home of $500,000 in those locations. When we are talking about this, although the Liberal government has come out with this great plan, the biggest areas with affordability issues will not even come close to what the buyers are looking for. One will not be able to buy a house in Toronto or Vancouver because that amount is lower. I am not saying it is a good or a bad program. However, as I said, it looks like it was done on the back of a napkin, because the affordability issue has not been addressed through this new program.

Also, according to a Bloomberg report, we have to look at household debt. The report states:

Household debt in Canada, a nation generally known for moderation, has reached levels that could be qualified as excessive. Canadians owe C$2.16 trillion—which, as a share of gross domestic product, is the highest debt load in the Group of Seven economies.

It continues:

Until recently, Canada had been lauded as a bastion of sound financial management. The country of 37 million emerged relatively unscathed from the global financial crisis, thanks in large part to the strength of its banks. But the extended run of low interest rates that followed sparked a boom in borrowing, with the ratio of debt to disposable income rising to a record 174 percent in the fourth quarter, from 148 percent a decade earlier.

It further says:

Households are feeling the strain. The debt service ratio—a measure of how much disposable income goes to principal and interest payments—climbed to 14.9 percent in the fourth quarter, almost matching the 2007 record high. A total of 31,900 Canadians filed for insolvency in the three months through December, the most since 2010. Credit growth is running at its slowest annual pace since 1983.

That takes us back to the deficit. That is why I wanted to talk about where Canadians are at: what they actually have, what their own credits and debits are, what they have as a bankroll and what they have for savings. We have a Canadian Prime Minister who is now spending more per person, inflation-adjusted, and has accumulated more debt per person than any other prime minister outside of a world war or recession. We are talking about good fiscal times and extraordinary spending.

Why should this concern us? With increased debt load, there are fewer resources available to provide the programs Canadians need. The final result are financial burdens on future generations, generations that are having increased debt loads due to things like housing, education and, actually, the carbon tax. People need to go to the grocery store and put gas in their tanks, although everything costs more.

This is a generation that has less money to save and less money to invest in the future. Why? We now have a government that is going to continue to spend, spend, spend, so the debt load at home continues to get larger, and the debt load here at the Government of Canada continues to get larger. This brings me back to my original quote indicating that, under the current government, the deficit is projected to increase to over $100 billion.

It also brings me to the data that I have been looking at in different magazines, looking at the growth of the total industry and the goods industry. At the beginning of the government's mandate, we continued to see increased growth in the GDP, growth that started under the former Conservative government. According to data received and published, we have seen an ever-growing decline in the goods industry. By looking at those charts, we can see that we were going up and in the last year and a half to two years, we are beginning to go down, climbing down to lower rates.

As Kevin Page states:

Output in the goods sector has declined over the past year due to weakness in mining and manufacturing. Business investment is falling. Both the World Bank and the International Monetary Fund recently raised alarm over rising uncertainty due to trade tensions, the potential for financial market corrections and geopolitical issues. Projected growth rates in the Budget for 2019 (GDP up 1.8 per cent) look strong given the weakness in the latest GDP estimates. Projections for future sales in the Bank of Canada business outlook survey have flatlined.

This is the part where we must be concerned. We are talking about debt loads at home continuing to increase and the government continuing to have increased debt loads as well. How can people prepare themselves for the future?

I always state when I am in this House that I am a proud mother of five. I am very concerned about their future, as I know that the government has no problem just continuing to throw the debt load on top of that. That is why I want to finish off with a quote that I found from Kevin Page, who quotes the writer Stephen King: “There is no harm in hoping for the best as long as you're prepared for the worst.” I feel that the government has not prepared Canada's economy and it has not prepared our future generations for what it has left behind.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, I would disagree with the member's closing remarks. The government has done exceptionally well in preparing, going forward. The numbers speak for themselves, with well over 900,000 new jobs in the last three and a half years by working with Canadians from every region of the country. We have seen exceptional growth in many different areas.

What I find interesting is how the Conservatives try to give the impression that they know how to manage deficits. They are very critical of the current government's deficit. Could the member explain to Canadians why it is that Stephen Harper, when he was the prime minister, actually accumulated $150 billion-plus in debt? That is to keep in mind that when he as prime minister inherited the books of Canada, he actually inherited a multi-billion dollar surplus. The so-called fictitious balance that the Conservatives say they ended his 10 years with was really non-existent.

[Karen Vecchio, Conservative, Elgin—Middlesex—London, ON]

Mr. Speaker, I was really proud last week. I joined a group from LSTAR and from CREA, and we went down to Toledo, Ohio, where we saw the impact of the global economic downturn in the number of houses that were lost in those areas of Toledo, Ohio and in the Detroit area.

We were fortunate enough to have great leadership, and great policies when it came to our banks, to move forward. Part of that was called “stimulus spending”. The stimulus spending was put forward through recreation and through the building Canada fund and a variety of things and partnerships with the provinces. We were able to get things done. We were able to keep people employed. I was fortunate to be in an office working with those people who had become unemployed, looking at opportunities for us. We put together sound policies. We put forward sound programs that would help Canadians through this crisis. We were doing it the right way, yet these people are just spending, spending and spending.