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.

Report Stage

[Sonia Sidhu, Liberal, Brampton South, ON]

Mr. Speaker, I rise on a point of order. When answering a question, I mentioned the Canada child benefit, and I just want to correct the record. It is not doubling; it is being indexed to inflation.

[The Assistant Deputy Speaker, Anthony Rota]

Thank you for clarifying that.

Questions and comments, the hon. member for Winnipeg North.

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

Mr. Speaker, asking for clarity from the Conservative Party is something we really need to do more often. For example, we just asked about the stress test, and I can appreciate the concerns related to that, but there are two other areas I think Canadians deserve some clarity on.

We are still waiting for the Doug Ford approach on what the Conservative Party nationally is going to be doing on the environment. We are told that it will be at the end of the month. I guess Mr. Ford and the Conservative brain thrust here in Ottawa are meeting to come up with that on June 28. We are anxiously awaiting that.

There also seems to be a bit of a flip-flop with regard to deficits. Originally, the Conservatives were saying that they could do it in a year, possibly two. Now they are saying four or five years, and so forth.

I wonder if my friend could tell me to what degree he believes the Conservatives are actually being transparent with Canadians, when they are not telling them what their true intentions are. The member wanted to focus on the press, for example. What are their true intentions for the CBC? There are so many issues. So much needs to be more transparent. When can we anticipate that from the Conservative Party?

[Todd Doherty, Conservative, Cariboo—Prince George, BC]

Mr. Speaker, that is like the pot calling the kettle black.

We have been clear and transparent right from the very beginning. I would remind my colleague across the way that it was literally two weeks into the 2015 campaign when the Liberals' fully costed plan came out. We will take no lessons from the folks sitting across the way. I would warn them to not get used to the seats across the way, because October is coming, and they will be on their way.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Mr. Speaker, it is time to take a look at the Liberals' record. There are two and a half weeks left in this Parliament. The budget implementation bill that is before us today is the government's last. Anything not contained in that bill will have to wait until after the election. Budget 2019 is consistent with this government's approach of saying one thing and doing the opposite.

First, let us talk about this so-called green government. Since the last election, bitumen extraction in Alberta has skyrocketed. We are talking about an increase of 25%. That is no small thing. Extraction grew even faster than under Stephen Harper. In fact, production has grown so much that it has exceeded transport capacity.

Today, the Liberals and the Conservatives would have us believe that there is a pipeline problem, but that is not the case. There is an overproduction problem, which is not the same thing. To limit overproduction, the government is proposing to support new investments in the oil sands with accelerated capital cost allowance. A total of $2.7 billion in taxpayers' money will be wasted on this tax expenditure.

In one year alone, the government announced $19 billion in new oil investments. The oil industry certainly got the message. If you look at production estimates, it is clear that the industry wants to maintain the level of growth it has seen the past four years. This will result in more overproduction and cause prices to continue their downturn. This is meant to make us believe that more pipelines are inevitable and that we have no choice but to export and pollute more.

The direct consequence of this government's policies is that energy east will be forced back on us. The Liberal government is working to keep us in the 20th century, bogged down in the tar sands.

[Alain Rayes]

Where do you get your gas?

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Mr. Speaker, at my daughter's school there is a big banner saying “zero tolerance for bullying”. The previous Conservative member who spoke accused the Liberals of bullying, and now the member for Victoriaville is hurling epithets and questions at me. There should be zero tolerance for bullying here too. We have a right to speak without being interrupted.

To get back to what I was saying, that is not what we need in Quebec. We have already started to go green. GHG emissions per capita are two and a half times lower in Quebec than in the rest of Canada. A policy for the 21st century is to make polluting expensive and avoiding pollution profitable.

I can already hear the Liberals saying that they created the carbon tax, so let us talk about it. The government imposes a tax, then gives the money back to those who paid it. It is a circle that does not result in any real transfer of wealth from polluters to the good guys. It does not make it profitable to go green. It will not result in a true green shift. It does not entitle anyone to make green speeches. It is merely an image, just like the government has been since it was elected: an image, no more, no less, but definitely no more.

Let us move on. In the lead-up to the budget, the Bloc québécois reached out to Quebeckers, and what we consistently heard was that their main priorities are health and education. There is nothing about that in the budget. Health transfers have been capped at 3% for two years, and yet, health costs in Quebec have risen by 5.2%. You do not need a Nobel prize in mathematics to see that there is a problem. The healthcare system is stretched to its limit, and wait times are getting longer. Something has to give, and everyone knows it.

Everything I have just said about the healthcare system also applies to education. Teachers are as burnt out as nurses. It is the same problem, except that, in this case, transfers were capped at 3% 15 years ago. Health and education are Quebeckers’ two main priorities. There is nothing about that in Bill C-97. The government decided to gradually move away from Quebecker’s priorities. That is abundantly clear in Bill C-97.

Now, let us look at the measures the government has taken to stimulate the economy. Its primary measure involves infrastructure. In and of itself, that is a good thing, but the methods used are another story. By multiplying specific programs, each one with very strict criteria, Ottawa has ruined everything. Federal requirements have caused a tug of war with Quebec and will paralyze the entire process. The result is striking: the money is starting to trickle down just before the election. We had to wait a long time. In the first two years of its term, the government spent $100 per Quebecker and $700 for each Canadian outside Quebec.

We know the federal government is building precious little infrastructure. It owns barely 2% of all public infrastructure, while the provinces and municipalities own 98%. Through federal transfers, the government is financing infrastructure that does not belong to it, that is not within its jurisdiction and that it does not have the means to prioritize intelligently. The government had good intentions, but the whole undertaking has been a monumental failure on the ground.

The money is not flowing. The federal criteria are too rigid and do not meet communities' needs. During the last election campaign, the Liberals promised to transfer blocks of infrastructure funding. They promised to mind their own business and do their job. That is yet another broken promise, and Quebec is paying the price.

As I said, my leader and I have been travelling around a lot listening to Quebeckers. People do not realize how future-focused Quebec is. Quebeckers are creative and innovative. Yesterday's tinkerers are now developing video games, designing new aircraft and working on artificial intelligence. Year after year, Quebec accounts for between 40% and 45% of Canada's tech exports, even though its share of Canada's economy is only half that much.

In metropolitan areas across Quebec, there are at least 5,000 technology startups. I think of it as Silicon Valley North. What is in Bill C-97 for technology? Is it an aerospace policy? No. Is it patient capital to let our technology start-ups develop here in Canada rather than being bought out by U.S. web giants? It is not that either.

However, there is some venture capital to help out the rest of Canada. That is how it is in all areas. When Quebec succeeds, Ottawa is not there. Take supply management, for example. Our regional agriculture lends itself well to local distribution. That is the future. Instead of helping, the government is hurting agriculture. It has signed three trade agreements with three breaches, and not a single penny has been paid to farmers.

We scoured Bill C-97 for the compensation, but it is not there. Our producers were taken for a ride. They will get nothing before the election. That is also the case for Davie. Does Bill C-97 announce a review of its horrible naval strategy? The answer is obviously no.

The same goes for the fight against tax havens. These loopholes allow banks and multi-millionaires to get out of paying taxes. The government needs to act fast, but instead, it has legalized three new tax havens. In my private member's bill, I proposed a working solution to close the loopholes, but, of course, all the Liberals but one voted it down. Like the sheriff of Nottingham, they would rather defend fat cats than low-income workers. The Conservatives also voted against my bill, but at least they were being true to type. Unlike the Liberals, they do not try to dress up as Robin Hood.

[Anne Minh-Thu Quach, NDP, Salaberry—Suroît, QC]

Mr. Speaker, I have a question for my colleague, who is also a young MP.

Does he think the government is doing enough on the environment? The government boasts that it is going to meet its targets, yet all the reports released to date, including one from Environment and Climate Change Canada, say that Canada is not on track to meet its targets, even though they were set by the Harper government.

Our greenhouse gas emissions went up by 12 megatonnes over last year. It would take Canada 200 years to meet its reduction targets. The government is still subsidizing the fossil fuel sector. It has no overall plan for moving jobs to renewable energy sectors. There is ample proof that six to eight times more jobs could be created in renewable energy than in fossil fuels.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Mr. Speaker, I thank my colleague from Salaberry—Suroît for her question. Her comments were very astute.

As I said in my speech, under this government's watch, oil sands extraction has increased by 25%. That says it all. This government says it cares about the environment and that it is polluting less, yet extraction has increased by 25% in four years.

Next, I talked about their notorious carbon tax. They are rewarding those who pollute. This is not a wealth transfer or incentive for those who pollute less, nor is it a penalty for polluters. It is an empty gesture that is meant to sound environmentally responsible, but when we really look at the actions taken, it is not the same thing. That is why Canada's reputation around the world on environmental matters has plummeted to zero. This is simply not good enough, considering the urgency. Urgent action is needed. We cannot afford to let the situation deteriorate any further. All reports from the IPCC and scientists are telling us that we need to act now, that strong action is needed right away.

These measures could also help Quebec's economy. We have everything we need to transition to a green economy, a forward-looking, 21st century economy. The only thing missing is the will on the other side of the House, which clearly is not there. We hear nothing but empty rhetoric.

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

Mr. Speaker, I want to pick up on the member's comments with regard to a price on pollution. The Province of Quebec has been very progressive in terms of its attitude on having a price on pollution, and we see that as a very strong positive. I would argue that the national government having a nationwide price on pollution ultimately complements some of the fine work that has taken place in provinces like Quebec.

One of the goals of having a strong national government is to ensure that we have a healthier nation with regard to our environment, or a healthier planet as a direct result. In many different ways, there are lots of positive progressive measures happening in different regions of our country. Quebec is a very good example of the price on pollution.

Would my colleague across the way not agree that it is good that Canada has a national price on pollution?

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Mr. Speaker, I thank my colleague from Winnipeg North for his words of praise for Quebec's carbon pricing system, which is working quite well, though much still remains to be done.

With respect to the national carbon tax, I would say that its criteria are lacking. Major polluters are currently exempt, and only consumers, meaning Canadians, are paying it and receiving a cheque in return.

If we really want to leverage this measure to bring about a change in behaviour, we have to start by going after the main emitters, rewarding those who do good things for the environment and punishing those who increase pollution.

Yes, it is a good idea, and it sounds good, but as for the real, concrete impact, the Bloc Québécois and I believe it is not enough.

[The Assistant Deputy Speaker, Anthony Rota]

Resuming debate.

The hon. member for Mission—Matsqui—Fraser Canyon will have about eight minutes, and then two minutes when we return, as well as five minutes of questions.

[Jati Sidhu, Liberal, Mission—Matsqui—Fraser Canyon, BC]

Mr. Speaker, I am pleased to speak today to budget 2019, a budget that makes it easier for Canadians to thrive and join a prosperous middle class.

Housing affordability is a large part of this budget. That is because Canadians have told us that the rising cost of housing is one of the biggest barriers to getting ahead in life. Housing supply has not kept up with demand, which has driven up costs to the point where an adequate place to call home has become out of reach for too many families. This means they do not have the safe, stable base they need to find work, study, raise their families and contribute to their communities.

This is why our government developed a national housing strategy, which includes a number of initiatives to boost the housing supply, focusing primarily on the needs of the most vulnerable populations. These programs are already having an impact on communities across the country by giving more Canadians safe, affordable rental homes. In fact, budget 2019 includes an expansion of the successful rental construction financing program, which will add significantly to the rental housing supply and, in turn, bring down the cost to rent.

Today, I want to speak about an innovative program in the budget that makes it more affordable for young Canadians to buy their first homes. While it is true that whether one rents or owns it is still a home, many Canadians aspire to own their own homes. When first-time homebuyers purchase a home, it frees up even more rental supply and leads to lower rental costs for those in housing need.

Unfortunately, for too many Canadians, home ownership is increasingly out of reach. Beginning in September, the first-time homebuyer incentive will help more young Canadians buy their first homes by reducing their mortgage payments. Eligible buyers who have the minimum down payment required for an insured mortgage will be able to finance a portion of their home purchase through a shared equity mortgage with the Canada Mortgage and Housing Corporation.

The new program will provide funding of 5% of the purchase price for existing homes and 10% for newly constructed homes. Rather than making ongoing monthly payments on the shared equity portion of the mortgage, the buyer would repay the incentive at a later date. This keeps monthly costs down for homebuyers so they have money for everyday expenses.

Details of the program are being finalized and will be announced at the end of the year. However, I can tell my colleagues in the House that for families a buying $400,000 home, this program could save as much as $228 per month and up to $2,700 per year per family.

Officials at the Department of Finance and CMHC have worked hard to develop a program that is balanced and achieves our objectives of helping first-time buyers without undoing the progress we have already made through measures that prevent excessive borrowing and limit house price inflation. It does this by focusing specifically on those who need help the most.

Younger Canadians who have a household income of about $120,000 a year or less have trouble affording home ownership. It ensures they do not take on too much debt by limiting total borrowing to four times their income. In addition, to be sure the program does not end up contributing to the house price inflation, we have capped it at $1.2 billion over the next three years. The inflation effect will be minimal, less than 0.5% at the most, if that.

This program will make home ownership more affordable for young Canadians in a way that is more effective than the measures some other people have suggested. Measures like reducing the mortgage insurance stress test or extending the maximum amortization period to 30 years would simply put Canadians into greater debt. The rate of home price inflation would be five to six times greater than the maximum anticipated by the first-time homebuyer incentive.

Finally, by doubling the incentive for the purchase of a new home, the new program will encourage new supply to meet housing demands, which in turn keeps prices down for all Canadians.

This program will work in all markets, including Vancouver and Toronto. Even with a cap of four times the household income, first-time buyers will have the option. It may not be a condo in Yaletown or a house in Riverdale, but there are starter homes in both metropolitan areas that could be purchased using this program. In fact, based on last year's activity, more than 2,000 homebuyers in Toronto would have been eligible for this FTHBI, and over 1,000 homeowners in greater Vancouver would have been eligible.

Budget 2019 will also establish a fund to help existing shared equity mortgage providers scale up their businesses and encourage new players to enter the market. The fund will provide up to $100 million in lending over five years and will be administered by CMHC.

Our support for Canadians trying to purchase their first home does not end there. Budget 2019 also provides first-time buyers greater freedom to invest their RRSP savings by increasing the homebuyer plan withdrawal from $25,000 to $35,000.

We have also proposed the new housing supply challenge. This $300-million initiative will help municipalities and other stakeholder groups to find ways to break down barriers that limit the creation of new housing.

Infrastructure Canada and CMHC will collaborate on designs for the new measures.

The House resumed consideration of Bill C-97, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2019 and other measures, as reported (with amendment) from the committee, and of the motions in Group No. 1.

Budget Implementation Act, 2019, No. 1

[The Speaker, Geoff Regan]

The hon. member for Mission—Matsqui—Fraser Canyon has two minutes remaining in his speaking time.

The hon. member for Mission—Matsqui—Fraser Canyon.