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.

[The Chair, Liberal, Wayne Easter]

I think it's the principle of the legislation that we're debating at the moment. If we can get into the details the officials can answer, maybe that's where we ought to be. I think we are having a great exchange. This is a wonderful exchange, but we really need to get into Bill C-97—

[Sonia Simard]

With regard to your question, perhaps I could add one other angle very quickly.

Aside from competition, the discussion in 10 years might be on the labour model, and we wouldn't want to lose the occasion to address that issue right now in the current system in order to improve the competitiveness and the cost-efficiency of the service. So it's not only about the labour model; it's also about addressing the current efficiencies and working together with the pilots to do that. That's why, when we talk about the principles, the cost-efficiency and the responsiveness to users....

Take the example of double pilotage. We don't need to address labour models in order to address the issues and have a good look at double pilotage—for example, the need for double pilotage in winter. Bill C-97 will give us the tools, we hope, to look at efficiencies and address some of the competition issues.

[Capt Simon Pelletier]

That's a very valid point. The basis of having a certificated person, captain or officer, on board a ship is to make sure that this person has the proper local knowledge to safely navigate a ship within a compulsory pilotage zone. That's the basis. Essentially that's what has been going on in the regions. Every time there's a captain certificated, he's been through a thorough process, and the four pilotage authorities are assessing his competence and knowledge. That's fundamental for the system. As far as I know, Bill C-97 says the same thing.

[Capt Simon Pelletier]

After reading the proposed amendments, I don't see any concrete difference between the current act and the act that would be implemented following this process. As you said, regulations are in place in the four regions. I gather from the bill that Transport Canada would develop the regulations under the new act. The principles proposed in Bill C-97 suggest that things would be basically the same.

[Michael Broad, President, Shipping Federation of Canada]

Thank you, Madam Chair.

We are a national trade association. Our members are the owners, operators and agents of ships trading between Canada and overseas ports. Their vessels operate in all four pilotage authority areas in Canada from coast to coast. These ships, operating internationally, shoulder most of the pilotage costs in Canada.

The existing Pilotage Act has remained largely frozen in time since 1972 despite changes in navigational technology, ship design and communications. We strongly believe that Bill C-97 will provide a solid basis from which to continue the much-needed task of modernizing pilotage service in this country. We therefore urge members of this committee to ensure that these amendments are passed into law as soon as possible.

In Canada, pilotage authorities are mandatory, and delivered under a legislated monopoly with a for-profit component. More specifically, under the existing Pilotage Act, pilotage authorities are solely responsible for the administration of pilotage services, while pilots are responsible for delivering these services either as employees of the authorities or as for-profit corporations on a contractual basis.

Before going any further, we wish to note that the existing act has served as an excellent tool for ensuring safe navigation in Canadian waters, and the amendments proposed under this bill in no way detract from this essential value of the pilotage system. Unfortunately, the present pilotage model lacks accountability and transparency, in some cases is insufficiently responsive to user needs, and does little to foster a culture of continuous improvement or cost competitiveness. As a result, the uptake of new technology has been less than optimal and the system has been unable to control costs.

We are therefore pleased to note that the amendments to the Pilotage Act proposed under Bill C-97 will provide a number of important tools for addressing these concerns and modernizing the delivery of pilotage services in Canada. One of the key tools provided under the bill is the addition of an explicit “purpose and principles” clause that will directly shape how pilotage service is delivered and how legislative, administrative and judicial powers are exercised. Given the important role this clause will play in the way service is delivered and enforced, we have proposed a handful of amendments in the form of additional wording to strengthen the framework that Bill C-97 provides. Those amendments can be found in our written submission.

In order to further strengthen the implementation of the act, we also respectfully request that this committee consider making comments in its report on the need to ensure that Transport Canada continues to work towards greater transparency and accountability from pilot corporations, given their status as legally imposed monopoly service providers. In addition, in a context where the regulatory framework will be consolidated under Transport Canada, we urge the committee to stress the importance of providing Transport with the necessary resources to deliver in terms of regulatory development while also ensuring that pilotage authorities are provided with the necessary management tools to remain effective.

Finally, there is one element of division 11 that we object to, the transfer of the full costs of administering the legislation from Transport Canada to the private sector. We are unaware of any other activity-specific legislation that would allow the minister to pass on these costs to industry. In addition, it would seem that any cost recovery initiative should be subject to the Service Fees Act, which comes with its own set of guidelines, rules and standards. This proposal also fails to acknowledge the public good component involved in legislating pilotage services in Canada.

To summarize our asks, first, we strongly support the amended pilotage framework proposed under division 11 of Bill C-97, and ask the committee to ensure that it is passed into law as soon as possible. We ask you to consider one set of very targeted amendments to the purpose and principles clause, which will further strengthen the framework from a user's perspective. Finally, we ask the committee to consider the removal of the extraneous clause with respect to the transfer of Transport Canada's administration costs, which goes beyond mandatory pilotage and, in our opinion, differs from government-wide policies.

[Bruce Burrows, President, Chamber of Marine Commerce]

Good morning, everyone.

Thank you, Madam Chair, and thank you for the invitation to appear before the committee.

My name is Bruce Burrows. I'm the President of the new Chamber of Marine Commerce.

I'm joined today by Robert Turner, our Vice-President of Operations.

I'll launch right into our remarks, as I know you're all aware of the CMC and what we do.

The CMC represents over 130 marine industry members in Canada and the United States.

I can't stress how fundamentally important these reforms are to Canada's pilotage system. The Pilotage Act hasn't seen a major overhaul since the early seventies, and it shows, quite frankly. After 45 years, we're finally seeing changes in Bill C-97 that will set out a framework that will encourage greater objectivity, transparency and consistency. All of these are essential elements to good governance, which has been lacking in today's monopolized pilotage system.

The Pilotage Act will now have clear purpose and principles to guide decision-making, and pilotage services are to be provided in an efficient and cost-effective manner.

Use of evolving technology and sound risk management are also brought to the forefront.

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

I call to order this meeting of the Standing Committee on Transport, Infrastructure and Communities. Pursuant to Standing Order 108(2), we are studying the subject matter of clauses 225 to 279, part 4, divisions 11 and 12, of Bill C-97.

Welcome, committee members and all of our witnesses. My apologies for the forthcoming interruption of our meeting, but we'll try to get as much done as we possibly can in a shorter period of time.

By the way, we are not in camera. This meeting is public and will be recorded at the same time.

Before we go on to our witnesses, Mr. Badawey.

[The Chair, Liberal, Wayne Easter]

We'll call the meeting to order. We're continuing our meeting with officials on the budget implementation act, Bill C-97.

I'm not sure whether you were done your presentation or not, Ms. Tepczynska. Do you have anything more to add? If not, we'll go to questions on part 4, division 1, which is subdivision A, the Bank Act. Was there anything more you wanted to add?

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Fine. I understood that it was for 2025.

The other unkept promise, which was a very clear one, was the one about stock options. You at least mentioned that in the budget, and I have to recognize that.

In your budget statement, you mentioned that this was a highly regressive measure. You admit that the measure is regressive, and even include very clear figures in your budget. I will mention them so that people who are listening to us understand well.

In 2017, 2,330 individuals who earned more than $1 million a year shared $1.3 billion in tax advantages related to stock options. And then there were 20,140 individuals who earned less than $200,000 a year, who shared $120 million thanks to that measure. In your own words, this is a highly regressive measure.

The only thing you did in the budget, even though this relates to a 2015 promise, is say that you would examine the issue and make an announcement next summer. Bill C-97, which we are now studying, was your opportunity to change the Income Tax Act to finally correct it and provide that fairness.

Why did you again postpone a promise you made to Canadians, and which you have still not kept four years later, and are postponing again?

[Bill Morneau, Liberal, Minister of Finance]

Thank you. I have an hour and a half opening statement that I thought I'd start with. Seriously, though, thank you, Mr. Chair.

I'd like to thank all the members of the committee for having me here today. It's good to be back before this committee to discuss the budget implementation act.

Before I speak about the measures in this bill, I'd like to thank all the members on this committee for their due diligence on the pre-budget consultations. That obviously was critically important to us as we moved forward in the preparation of our budget. Of course, I'd also like to thank you now for your work on the budget implementation act.

This bill is the next step in our plan to invest in the middle class and ensure economic growth. Clearly, investments are essential if we are to do that.

When I talk to Canadians, they say they remember the situation in 2015. The Canadian economy had slowed down. People felt abandoned. During the years that followed, we worked extremely hard to reverse the situation through investments in people and communities, investments that bore fruit.

Canadians, supported by the government's economic plan, have created more than 900,000 new jobs since 2015, pushing the unemployment rate to near 40-year lows. Middle-class families are better off across the country, and fewer people are living in poverty in Canada today. That's a lot of progress over three and a half years, but we know there's still much more work to do. People are still feeling anxious about their futures and their ability to make big, long-term investments in their families.

That's why our government, through this budget implementation act, is taking more steps to invest in the middle class and the things that Canadians need to succeed. I'd like to take the opportunity this afternoon to highlight some of those important measures.

For many Canadians, one of their top concerns is their job. That makes sense. Canadians want to take pride in their work and be able to support themselves and their families, but as the global economy continues to evolve and as things like automation transform the job market, the skills people have today will need to change. This is a challenge that all industrialized countries are facing. What sets Canada apart and what will help us to remain competitive in the global economy is our people and the investments we make in them.

This year's budget proposes to introduce the Canada training benefit, a new benefit that will help Canadians to prepare for, to plan and to get the training they need. An important part of the benefit included in the budget implementation act is a training credit that will give working Canadians $250 every year to put toward the cost of future training, a credit that can add up to as much as $5,000 over the course of a career. That's the kind of long-term planning that you, as members, will be able to see in the course of reviewing all of our budget.

Housing is another good example. Our government believes that every Canadian should have a safe and affordable place to call home. The budget implementation act would enact Canada's first national housing strategy act, requiring the federal government to prioritize the needs of the most vulnerable in our society. It would require the government to report on progress toward achieving the strategy's goals, like building 100,000 new housing units, repairing 300,000 other units and cutting homelessness in half.

The BIA also proposes measures to help Canadians take their first steps toward home ownership. It would amend the National Housing Act and allow the Canada Mortgage and Housing Corporation to offer shared equity mortgages to eligible homebuyers. The first-time buyer incentive would reduce the monthly payments required for people in the purchase of their first home. For a new condo or house worth $400,000, the savings could be more than $225 per month. This measure is expected to help approximately 100,000 Canadians to buy their first homes.

The act would also increase the homebuyers' plan withdrawal limit, giving first-time homebuyers greater access to the savings in their registered retirement savings plan to buy a home. These measures would be especially beneficial to young Canadians for whom home ownership seems increasingly out of reach.

Housing isn't the only place where barriers exist for young people and that's why we're also working to make education more affordable. With the measures in the budget implementation act, students wouldn't have to start repaying their Canada student loans for six months after they graduate and interest wouldn't accumulate on those loans during that time period. That gives people time to start a career and to begin saving up. It's a change that sets young Canadians up for success, allowing them to focus on what they want to do, not on what they have to pay.

We're taking a similar approach with seniors. Through budget 2019 and through the budget implementation act, we're taking steps to make retirement more financially secure.

In order to help low-income seniors, we intend to raise the Guaranteed Income Supplement earnings exemption. This means that seniors will keep a larger part of their pay and benefits.

So that all workers may derive full advantage of their contributions to the Canada Pension Plan, we propose to register them proactively. The objective is to guarantee that those who contribute to the CPP and are 70 or more and have not yet registered to receive their pension benefits, will receive them. They deserve them. However, these are not the only measures that will allow us to protect Canadians and their families in the context of this bill based on communities and clean growth.

One of the other measures is to build a cleaner and more sustainable Canada. As you know, we already work with the provinces and territories to put a price on carbon pollution and fight climate change. We are going even further with Budget 2019 by making zero-emission vehicles more affordable, including for the businesses that want to renew their vehicle fleets.

The Act to implement certain provisions of the budget would allow those businesses to recover that investment faster.

Another way we're helping to protect Canadians is by combatting financial crime. I know this committee has done a lot of work in this regard and I know that you've looked at how we can best do that, and I'd like to thank the committee for that work. With this legislation, we know we can help improve Canada's anti-money laundering and anti-terrorist financing framework, strengthening the resources, intelligence and information sharing needed to identify and meet evolving threats, while also continuing to protect the privacy rights of Canadians and manage the regulatory burden on the private sector.

I could provide more examples. After all, as you know, this is an ambitious agenda, but what I'd like to do instead as I conclude my remarks is to thank the members of this committee for their careful attention to the bill. It's a bill that will help prepare Canadians for good jobs, make it easier to buy a home, and help young people starting out and seniors as they retire.

I'm happy to take your questions.

[The Chair, Liberal, Wayne Easter]

We shall call the meeting to order. Pursuant to the order of reference of Tuesday, April 30, 2019, the committee is studying Bill C-97, an act to implement certain provisions of the budget tabled in Parliament on March 19, 2019, and other measures.

We have the honour of the Minister of Finance, the Honourable Bill Morneau, appearing before us, as well as Rob Stewart, associate deputy minister, and Andrew Marsland, assistant DM. I believe there's a number of other finance officials in the room.

Mr. Minister, the floor is yours. I understand you have an opening statement and then we'll go to questions. Welcome.

Budget Implementation Act, 2019, No. 1

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Madam Speaker, I am pleased today to rise to speak to the perspectives and concerns of my constituents, as well as in my role as the shadow minister for transportation, regarding Bill C-97, which is another omnibus bill proposed by the current Liberal government.

I want to begin by commending my hon. colleague, the member for Carleton, for his thoughtful and comprehensive response to the budget. As he so aptly noted, this budget is a string of broken promises and perhaps the most expensive cover-up in history. The Prime Minister and his government are attempting to change the channel on the SNC-Lavalin affair and are using billions of taxpayer dollars to make this happen.

As we all know, the Liberal Party ran on the promise of balancing the budget in 2019. It is a promise made, and it is a promise broken to the tune of $19.8 billion.

For years now, the member for Carleton has repeatedly asked a simple question of the finance minister: When will the budget be balanced? Every time, the finance minister has refused to answer. Despite the minister's refusal, we do know that there is no plan to balance the budget before 2040, if even then. By 2040, the Liberals' current plan would see $271 billion added to our debt. The government has left us with nothing in our back pocket. The Liberals have spent their paycheque, our paycheque and our children's paycheque. If we face another economic downturn, they will spend our great-grandchildren's money as well, long before they have even been born.

In just three years, this Prime Minister has added $60 billion to our national debt, and any comparison to the previous Conservative government's spending is made in bad faith. While the Conservative government faced down the worst economic crisis since the 1930s, this Prime Minister has had nothing but clear sailing. Under the Conservatives, Canada weathered the economic storm better and returned to balanced budgets faster than any other country in the G7. That is because we spent when we needed to and saved when we could.

This Prime Minister has managed to turn a balanced budget and booming world economy into giant deficits and a slowing Canadian economy. While our neighbours to the south enjoyed a 3% growth in 2018, Canada eked out a mere 1.8%. Only a few days ago, the Bank of Canada suggested that we will slow even further this year, to 1.2%.

I know it can be hard to track the numbers. In fact, that is what the Liberals count on. Therefore, let us simplify it: The tens of billions of dollars of wasted, inefficient spending from the current government have done nothing for our economy but bleed it dry. What is the government's response? It is to spend more. The Liberals spend in the good times and the bad. They always spend.

There are only two reasons for a country to have a deficit problem: Either there is a revenue problem or there is a spending problem. With tax revenues actually higher than expected, the answer is clear. The government has a spending problem. In fact, with this budget containing over $41 billion in new spending over the next five years, a seemingly ridiculous question has to be asked: Are the Liberals intentionally spending so recklessly just to stay in deficit? How else can we explain a 20% increase in spending in the first three years of the government's mandate? All of this increased spending is taking place against the backdrop of higher taxes and an increased cost of living brought on by the government.

Over 80% of middle-income Canadians are paying more in taxes now than they were three years ago. This has resulted in many Canadians finding it hard to make ends meet. Almost half of Canadians are within $200 of not being able to pay their bills at the end of the month. Any unforeseen expense would result in these families facing serious financial hardship.

If the government had handled finances better, paid down debt and built a rainy-day fund, we could be cutting taxes for these families and helping them make their payments. Instead, the Liberal government has spent beyond its means and brought in a carbon tax, forcing families to pay more to heat their homes and drive to work. What is even worse is that the Prime Minister is forcing those families to pay the GST on his carbon tax. Imagine that, Madam Speaker, a tax on a tax.

There are two very specific sections on which I would like to comment briefly in my role as the shadow minister for transport in the Conservative caucus. First, I would like to discuss division 12, the government's proposed changes to airport security screening. The Minister of Transport has once again been strong-armed by his colleagues to include drastic changes to the system in a budget implementation act. It appears the minister and the government do not care about the economic well-being of our transportation system, or in this case the air passenger system.

At committee today, we heard that over the past two years, the Liberal government has time and again assaulted the Canadian airline industry with new taxes and costs without thought to how these changes will impact air passengers. Not only that, the government is rushing legislative and regulatory changes through to meet an artificial deadline.

The proposed changes in division 12 contain another example of this. Rather than consult and facilitate negotiations between the parties on a new security screening entity and its assets, the Liberals are ramming drastic changes through Parliament and down the throats of the industry. This will hurt not only airlines but also passengers. For years, governments have paid out less than they collected in the airport security fee that air passengers were charged. This means that passengers have already paid for CATSA assets worth hundreds of millions of dollars.

In a ridiculous move, the government's changes will force Canadian travellers to pay for these assets all over again, without due consideration for their depreciation or their actual value. This will doubtless result in higher ticket prices before even accounting for the carbon tax. The out-of-touch Prime Minister does not get that most Canadians do not have a taxpayer-funded private jet at their disposal for weekend cross-country surfing trips. Most Canadians have to save in order to afford a vacation. Those average Canadians are the ones who will pay for the reckless, heavy-handed changes in this bill. From making Canadians pay a tax on a tax to forcing Canadian travellers to pay for screening equipment twice, the government is better than the sheriff of Nottingham at squeezing taxes out of Canadians.

Finally, I would like to briefly discuss division 11, which contains changes to the Pilotage Act. Based on conversations I have had with stakeholders, I do not have deep concerns with the proposed changes, but it is very disappointing that these proposed changes were once again buried in a budget implementation act. Improvements to the Pilotage Act will reinforce Canada's commitment to a safe and efficient marine transportation system supported by a legal and legislative framework.

Given that, an oil tanker moratorium in any region of the country is an insult to both marine pilots and shippers alike. An arbitrary shipping ban based on an ideological election promise is basically an admission that the government believes there is no way marine pilots or shippers can do the job they have been trained to do. This is an insult to the entire industry.

As I said earlier, this entire budget is a litany of broken promises: a broken promise to balance the budget, a broken promise to help the middle class and a broken promise by introducing an omnibus bill. Come October, Canadians will remind the government of the cost of broken promises.

[Pam Damoff, Liberal, Oakville North—Burlington, ON]

Mr. Speaker, nearly four years ago, our government was elected with a commitment to invest in the things that matter most to Canadians, including housing affordability for young people; creating good, well-paying jobs; support for seniors and families; and protecting the environment. In March, our government tabled budget 2019, which would make important investments to deliver on this commitment to improve the quality of life for all Canadians and to continue to build on the work we have done over the last four years.

I am pleased to speak today to Bill C-97, the budget implementation act.

I have heard concerns from many of my constituents in Oakville North—Burlington, one of the most expensive housing markets in the country, about affordability and the accessibility of the housing market to first-time homebuyers. To help make home ownership more affordable for first-time buyers, budget 2019 proposes to introduce a first-time homebuyer incentive, which would create a fund of $1.25 billion that would be available to eligible first-time homebuyers with household incomes of under $120,000 per year. Budget 2019 would also provide first-time homebuyers with greater access to their RRSP savings to buy a home by increasing the withdrawal limit to $35,000.

Our government understands that the job market is changing rapidly. Many Canadians now need to develop new skills mid-career in order to pivot to a new career path. That is why budget 2019 proposes to invest more than $1.7 billion over five years in Canada's first-ever Canada training benefit. The new benefit would include two key components: introducing a credit to help Canadians with the cost of training fees, and creating an EI training support benefit that would provide workers with the flexibility to train when it worked best for them.

We would also lower the interest rate on all Canada student loans, changing the current federal student financial assistance regime so that student loans would not accumulate any interest during the six-month grace period after a student left school.

Recently I had the opportunity to visit Niagara College, in Welland, to talk to faculty and staff about these measures, and they thanked me for our government's work to support students, including our initiatives in budget 2018 to support young people who choose skilled trades.

In early March, the Advisory Council on the Implementation of National Pharmacare released its interim report. Budget 2019 affirms the government's commitment to work towards the three recommendations made by the council: the creation of a Canada drug agency, which would make prescription drugs more affordable for more Canadians; the development of a comprehensive, evidence-based list of prescribed drugs to harmonize coverage across Canada; and an investment in data on prescription drugs. Budget 2019 would provide Health Canada with $35 million over four years to support the development of this vision. In a measure being applauded by health care advocates, the budget would also invest up to $1 billion over two years to help Canadians with rare diseases access the drugs they need.

In 1980, Terry Fox united this country with a vision to one day find a cure for cancer. When Terry had to stop his Marathon of Hope, he said, “I’m not going to give up. But I might not make it...if I don’t, the Marathon of Hope better continue”.

Budget 2019 would help to realize Terry's dream by allocating $150 million towards the Marathon of Hope Cancer Centres Network. The federal government would collaborate with the Terry Fox Research Institute and its partners, which are providing matching funding, to link universities and hospitals across Canada to advance the principles of precision medicine and to transform how cancer research is done not only in Canada but around the world.

This particular investment is one that is close to my heart, and I want to thank Dr. Victor Ling, from the Terry Fox Research Institute; the Terry Fox Foundation chair, Bill Pristanski; and Terry Foxers across Canada for their advocacy and efforts to educate members of Parliament on this important investment.

Our seniors have shaped our country in countless ways, and after a lifetime of hard work, they deserve to have confidence in their retirement. Budget 2019 proposes new measures to better protect workplace pensions in the event that an employer goes bankrupt.

We are also allocating an additional $100 million over five years for the new horizons for seniors program. I know what an impact this program has for seniors in my riding at places like Tansley United Church and Oak Park Neighbourhood Centre, as it helps fund programming that promotes seniors' participation and inclusion in their communities.

I am proud to represent a community where so many of my constituents, in addition to their advocacy on environmental issues, make environmentally conscious choices in their day-to-day lives, such as reducing their use of plastics or driving zero-emission vehicles.

We know that more Canadians are choosing to drive zero-emission vehicles as an increasing number of models become available and prices decline. Regrettably, last year the Government of Ontario cancelled the electric and hydrogen vehicle incentive program, and a number of my constituents reached out to me to share their disappointment and frustration.

Fortunately, our government is taking action and has proposed strategic investments to help more Canadians choose zero-emission vehicles, including $300 million over three years to introduce a new federal purchase incentive of up to $5,000 for electric battery or hydrogen fuel cell vehicles with a retail price of less than $45,000.

As of April l, it is no longer free to pollute anywhere in Canada. Our government recognizes that we need to act now to ensure that our children and grandchildren have clean air to breathe, that Canada has a strong and healthy economy, that we make Canadians' health and safety our number one priority.

Pricing pollution is the least costly way to reduce greenhouse gas emissions and foster clean innovation. We will return all the revenue from a price on pollution to the provinces those revenues come from, with 90% going directly to families through a climate action incentive. In 2019, the average family of four in Ontario will receive $307 through the climate action incentive, while a single individual will receive $154.

The other 10% of revenues from the price on pollution will go towards helping small and medium-sized businesses, schools, hospitals, indigenous peoples, and communities improve their energy efficiency.

We are also making a one-time payment to municipalities through a municipal infrastructure top-up that will see Halton Region receive $16 million; Oakville, $5.9 million; and Burlington, $5.3 million. This money will go directly to support local infrastructure projects, such as public transit, disaster mitigation and adaptation projects, community centres and active transportation infrastructure.

As a former municipal councillor, I know that these funds will be a game-changer for our communities.

We are creating Canada's first national dementia strategy, with an investment of $50 million over five years. We are creating a pan-Canadian database for organ donation and transportation. We are investing in a pan-Canadian suicide prevention service, working with experienced and dedicated partners.

Diversity and inclusion are cornerstones of Canadian identity and something that all Canadians can be proud of. At the same time, recent tragic events in Canada and abroad have shown that no community is immune to the effects of hateful rhetoric. Around the world, ultra-nationalist movements have emerged, and in Canada those groups are unfairly targeting new Canadians, racialized individuals and religious minorities, threatening the peace, security and civility of the communities we call home. That is why this year's federal budget proposes to provide $45 million over three years to support the creation of a new anti-racism strategy. Its key purpose will be to find ways to counter racism in its various forms, with a strong focus on community-based projects.

The threat of climate change has become more tangible for Canadians as we see more severe, more frequent and more costly natural disasters, such as wildfires and flooding. One need look no further than the flooding in my community of Burlington a few years ago and the current flooding taking place here in Ottawa and Quebec and New Brunswick to know the devastation these natural disasters bring.

While Conservatives are making short-sighted decisions like the one in Ontario to cut funding by 50% to conservation authorities for flood forecasting and natural hazards management, we are investing $151 million over five years and $9 million per year ongoing to improve emergency management in Canada. These investments will enhance our understanding of the nature of risks posed by floods, wildfires and earthquakes. They will also help in assessing the condition and resilience of Canada's critical infrastructure.

There are many more investments in budget 2019, but I do not have time to outline them all. I am proud of the investments we are making to improve the lives of Canadians, and I know that all Canadians can be proud of them as well.

[Ruby Sahota, Liberal, Brampton North, ON]

Mr. Speaker, it is my pleasure to rise in the House today to speak to Bill C-97, the first budget implementation act for 2019.

First, this was a phenomenal budget for my constituents in Brampton North and for all Canadians. It would take far more than 10 minutes to talk about all of its strengths, but I will highlight some of its biggest wins for Brampton in the time I have been given.

In a city as fast growing as Brampton, infrastructure spending is especially critical. More Bramptonians make use of our roads and public transit system every day. Brampton Transit saw its ridership grow by 14% last year, with over 30 million total rides, making it the fastest-growing transit system in Canada. Budget 2019 embraces and invests in that growth.

A one-time transfer directly to municipalities will see the City of Brampton receive over $16.6 million in additional infrastructure spending. The region of Peel, which Brampton is in, is receiving a further $41 million through this transfer. This is money that can go toward improvements to our roads and highways. It can buy new buses, in addition to the 22 buses our government has already funded, or renovate transit hubs. It can make critical repairs to our water and waste water system. It can go toward new sports or cultural centres as well.

This funding is a big deal for Brampton, and I am thrilled it was in our budget.

However, let us not forget why this money is so important. Our government has billions of dollars on the table for the Province of Ontario through our investing in Canada infrastructure program, and $8.3 billion are available for public transit alone. Can my city apply directly to the federal government for funding? No, it cannot. For that funding to be available, the provincial government needs to come to the table. It is Premier Ford's responsibility to open up funding streams to be a full partner and get these projects going.

I have had many meetings with my city councillors, regional councillors and the mayor of Brampton. We all seem to agree that these projects cannot open up soon enough. However, it seems that Doug Ford does not want to invest, does not want to create jobs. Time is running out. The summer construction season is practically under way. Unions, trade associations and contractors are speaking up. They are concerned they will not have any work this summer.

While the province refuses to let cities apply for public transit funding, refuses to let them apply for any infrastructure funding, billions of dollars are being left on the table, as are the jobs and projects that come with it.

However, perhaps I am focusing too much on public transit funding. After all, looking at the Ontario transit plan, it does not look like Premier Ford intends for Brampton to receive any of it. A $28.5 billion transit line for downtown Toronto will take up every drop of infrastructure funding from multiple levels of government and then some, while leaving my city and my constituents out in the cold.

However, the municipal infrastructure funding is far from the only important part of budget 2019 for Brampton North.

If there is one thing my constituents have wanted in Brampton for a very long time, it is a university. Much like our government, we are a city that strongly believes in the value of learning and access to a good education. Our government's changes to make post-secondary education more affordable have been well received.

Within our first year of government, we increased Canada student grants by 50%. We ensured that graduates were not required to start making payments on their loan until they were earning $25,000 a year. We have more than doubled the number of Canada summer jobs so more students can get valuable work experience and save money for tuition or living costs.

Changes proposed in budget 2019, which are included in Bill C-97, will extend the interest-free period on student loans by six months, giving students room to breathe following graduation.

Investing in all levels of education, including post-secondary education, is essential to ensuring young people get the skills, training and opportunities they need to succeed in the workforce, now and well into the future. Our government understands that. My constituents understand that. I am proud that many of them joined in the province-wide walkout on April 4 to protest Premier Ford's education system changes. While we are making the six-month period interest-free, Premier Ford has taken away that period completely.

This is why so many of my constituents were devastated when one of the first things the newly elected Conservative provincial government did was cut the funding for the downtown Ryerson University campus. The cuts were unexpected and they blew a hole in Brampton's vision for an economic revitalization of our downtown core. They were universally condemned by my community.

I recall the president of Brampton's board of trade commenting that the move to cut funding did not inspire confidence in the government's decision-making—

[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.