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.

[Dennis Prouse, Vice-President, Government Affairs, CropLife Canada]

Thank you, Mr. Chair and committee members.

As Mr. Easter said, I'm Dennis Prouse, vice-president of government affairs for CropLife Canada.

CropLife Canada represents the Canadian manufacturers, developers and distributors of pest control and modern plant-breeding products. Our organization's primary focus is on providing tools to help farmers be more productive and more sustainable. We also develop products for use in urban green spaces, public health settings and transportation corridors.

We are here to speak in support of Bill C-97 due to the fact that it makes an important start down the road of regulatory modernization. As we know from both the advisory council on economic growth report—often known as the Barton report—and the agri-food economic strategy table, Canada must overcome internal regulatory barriers that hinder innovation and competitiveness if it is going to meet the government's target of $75 billion in agri-food exports by 2025.

Bill C-97 takes significant actions to address regulatory modernization. In particular, it makes key amendments to the Pest Control Products Act—PCPA for short—to help alleviate resource pressure on Health Canada's pest management regulatory agency to allow it to focus on work that meaningfully contributes to the agency's mandate.

The current requirement in section 17 of the PCPA requires the Minister of Health to initiate a special review of any pesticide where an OECD country bans all uses of an active ingredient. The language gives no discretion to the minister to determine whether or not a special review is necessary. An active ingredient that is currently under re-evaluation or has just been reviewed in Canada can still be subject to a new special review.

Certain interest groups have learned to exploit the current system, and the onerous special reviews, coupled with the challenges with the current re-evaluation process, are contributing to the PMRA's unsustainable workload. These duplicative efforts only serve to bog down the system and to prevent farmers from having access to the tools that they need to protect their crops and help drive Canada's economy.

Under Bill C-97, the Pest Control Products Act would be amended to give the Minister of Health discretion to move forward with a special review only when it stands to serve the best interests of Canadians. It also allows the minister to consolidate related special reviews, which would fix the tsunami effect that might otherwise result.

We applaud the efforts of Bill C-97 to address regulatory modernization, but it is only one part of a much broader set of improvements that are needed. For instance, we continue to press for critical improvements that can and need to be made to PMRA's re-evaluation process under existing authorities, as these have not yet been addressed.

Similarly, we are seeking formal cabinet-level acknowledgement of the economic role that both PMRA and the Canadian Food Inspection Agency play in facilitating agriculture and agri-food's economic growth. On the CFIA side for instance, the agency has still not yet clarified its regulatory oversight for products of gene editing. Gene editing is poised to transform agriculture around the globe. Despite this, Canada is falling behind some of its global competitors who are acting decisively on creating timely, predictable approaches to regulatory oversight for products of gene editing.

Examples like this are why the government needs to act quickly on the concept articulated in budget 2019 of placing a competitiveness lens on regulatory agencies. Competitiveness does not come at the expense of health and safety, which must always remain at the forefront. What it does mean is that regulators acknowledge and embrace their role in helping to facilitate innovation and competitiveness for Canadian companies, all while maintaining their focus on science-based regulation.

Action is also required for the annual regulatory modernization bill as outlined in budget 2019. The new external advisory committee on regulatory competitiveness will no doubt have some strong content for that bill.

It is encouraging to see momentum building around regulatory modernization that will serve to drive growth in Canadian agriculture and the economy writ large. However, regulatory modernization must be a whole-of-government exercise and must be led by key economic players, namely the Department of Finance and Treasury Board. Regulatory agencies do not reform themselves. They respond only to strong direction and leadership from above. Absent of that, regulatory modernization will slowly lose momentum and collapse. Given the promise held by economic growth in Canadian agriculture and agri-food, that would be a tragic development.

Thank you, Mr. Chair. I look forward to the questions that the committee might have.

[Shannon Coombs, President, Canadian Consumer Specialty Products Association]

Good morning, Mr. Chair and members of Parliament. It's a pleasure to be here today to provide our proposal for your consideration and to include in the clause-by-clause consideration of Bill C-97.

My name is Shannon Coombs and I'm the President of the Canadian Consumer Speciality Products Association. For 21 years, I have proudly represented the many accomplishments of this responsible and proactive industry. Today, I provided a one-pager, “Imagine Life Without Us?”, which illustrates the types of products CCSPA represents. I'm sure you have used many of them today.

CCSPA is a national trade association that represents 35 member companies across Canada, collectively a $20-billion industry employing 12,000 people across 87 facilities. Our companies manufacture, process, package and distribute consumer, industrial and institutional speciality products such as soaps and detergents, domestic pest control products, aerosols, hard surface disinfectants, deodorizers and automotive chemicals, or as I call it, everything under the kitchen sink.

I would also like to thank those MPs around the table who are assisting CCSPA with our social media campaigns on Lyme awareness, tick prevention and hand washing.

Why are we here today? Bill C-97 makes amendments to various pieces legislation. Part 4, division 9 of Bill C-97 includes provisions to support regulatory modernization in Canada. Four of the acts included within the regulatory modernization section impact our members. These pieces of legislation are the Pest Control Products Act, the Weights and Measures Act, the Food and Drugs Act, and the Hazardous Materials Information Review Act.

I would be pleased to answer any questions you may have regarding those acts. However, our primary focus today is not these but the Hazardous Products Act.

First and foremost, CCSPA applauds the government's commitment to support regulatory modernization in Canada. Minister Morneau's fall economic statement underscored the need for regulatory reform to make it easier for Canadian businesses to grow and remain competitive while still protecting the health and safety of Canadians. Given this commitment, we are here today to request the removal of a costly and unique-to-Canada provision in the Hazardous Products Act via Bill C-97.

The requirement found in paragraph 14.3(1)(a) of the Hazardous Products Act requires suppliers to keep a “true copy” of labels for workplace chemicals housed on a server in Canada for six years. This unique-to-Canada provision was included in the omnibus bill of 2014, when amendments were made to the Hazardous Products Act to allow for the modernization of the hazardous products regulations. As the provision for the “true copy” was included in the legislation, it did not have to go through any costing for companies. In the development of the regulations, it also avoided regulatory costing oversight as it was considered “compliance” and outside the scope of the regulations and the one-for-one rule. To date, no clear policy intent or objectives have been provided to us related to the true copy provision.

The cost for our member companies to comply with the true copy requirement is prohibitive and is realized throughout the entirety of the Canadian supply chain. On average, CCSPA members will have an initial investment for the first year of $4.2 million, $17 million in ongoing investment for each year for human resources, and up to $10 million associated with the Canadian server. If we were to break it down and look at the impact on an individual company, annual costs for one member with four manufacturing sites are estimated at $400,000 to inspect, photograph and catalogue 23,000 receipts of their raw materials annually. The costly process has been captured on the left-hand side of the the document that I provided to the clerk for your reference.

As members can see from the diagram on the right-hand side, costs are not just borne by the manufacturer but upstream by the supplier and downstream by the distributors. Everyone will have to collect and retain the label information already captured on the safety data sheet. The redundancy of collecting this information at multiple points in the supply chain is an unnecessary burden and one without a clearly defined benefit.

As mentioned earlier in my remarks, regulatory modernization must work together for the “health and safety of Canadians” policy objective. The removal of the true copy provision within the HPA does not diminish the protection of Canadian workers. Industry is obligated to provide safety data sheets for all hazardous materials and chemicals used in the workplace. Under the Hazardous Products Act, suppliers are required to retain a copy of all safety data sheets for six years. This requirement is aligned with the United States and the EU requirement for safety data sheet retention. We are the outlier with respect to this unique label data collection.

The role of a safety data sheet is such that employers are obligated to train workers on hazardous chemicals that they work with and to ensure that workers read and understand the safety data sheets before they begin handling the products. This helps to ensure that their workers are protected when they use those products. The safety data sheet, which contains all of the important information on how to use that product, is the most comprehensive document that can be used to train workers on the hazards and precautions specific to that product. As members can see from the copy of the SDS that the clerk has shared with you, it is the most comprehensive piece of information. The label is a limited restatement of those hazards and precautions that already appear on the SDS.

CCSPA has been and remains committed to working with this government to support an efficient and effective regulatory climate for businesses so that we can be competitive at home and abroad. We believe that the issues, as outlined, support our collective goal of meaningful regulatory change as per the government's regulatory reform agenda.

For companies who wish to be competitive in North America, this unusual paper burden, unique to Canada, is a disincentive to innovation and keeping businesses here. We respectfully request that the finance committee help us to remove this unique legislative burden and deliver against the government's regulatory reform agenda.

Thank you, Mr. Chair.

[Clayton Achen, Managing Partner, Achen Henderson LLP]

Thank you, Mr. Chair.

Thank you very much for allowing my voice to be heard in this committee. I am truly honoured and humbled to be here with you all today.

My name is Clayton Achen. I'm a founding partner at Achen Henderson CPAs in Calgary. Given my practice area, my primary interest with respect to Bill C-97 is tax—specifically the taxation of private companies and small businesses and their owners. I'm primarily interested in what's missing from Bill C-97.

My firm's day-to-day work as a chartered professional accounting firm is to work directly with middle-class small business families. This has given us better perspective than most to see how hard it is for entrepreneurs to earn a living. We also see how easy it has become for our government to take those hard-earned dollars away, sometimes under the guise of fairness, which is a clever word that does nothing to consider the risks and ultimate hardships that an entrepreneur endures.

I'll spend a few minutes talking about some of their more recent challenges, including economic challenges, increases to tax, increased compliance burdens and uncertainty, and challenges in dealing with the CRA and navigating our tax system. I'll then make some brief comments on Canada's desperate need for a modern tax system and close with my thoughts on a few business-related items that are contained in Bill C-97.

It cannot be understated how complicated our tax system has become in the last 50 years, which was the last time that a comprehensive review was undertaken. Our last three budgets have heaped more and more layers of complication and burdens of compliance onto Canadian small businesses. While I am grateful that the attack on private corporations and their shareholders appears to have subsided in 2019, I am disappointed that the bill contains nearly nothing to help them.

What we've seen, particularly in my home province of Alberta, is that entrepreneurs have faced tremendous adversity in the last five years and particularly in the last three and a half.

In Alberta, some small businesses have managed to survive a long and sustained economic downturn with very little help from our governments. A lot have simply closed their doors and are out of work.

For all Canadian small businesses, the cost of compliance has increased dramatically as a result of changes to the inter-corporate dividend rules, tax on split income, the specified corporate income and association rules, changes to family trust reporting and new penalties for saving too much in your business regardless of the reason.

Many wealthier clients have increased their risk tolerance with regard to tax planning strategies and reduced their tolerance for economic risks. Many wealthier clients are shifting their wealth out of Canada.

Most of this is a direct side effect of the offensive and ill-conceived attempt at tax reform for private corporations and their shareholders that was announced on July 18, 2017. Moreover, all companies, including small businesses, are now shouldering significant CPP increases for the next seven years.

According to research conducted by the CFIB, Canadian small businesses are now being asked to shoulder nearly half of the federal carbon tax take, which increases the cost of everything—and I mean everything—while receiving disproportionately small rebates.

In many cases, small businesses have tried to pass these costs on to consumers in order to remain viable. In many cases, they simply can't. This results in corporate inequity, meaning smaller companies are simply unable to compete with larger corporations and multinationals who are better positioned or better equipped to shoulder these additional tax and compliance burdens.

I share these insights with you today not to complain, but rather to highlight that there have been real, rapid and sustained challenges for middle-class small businesses owners across Canada and Bill C-97 offers very little in the way of assistance or stimulus.

The next issue is the CRA's service levels. I can confirm the substance of the 2017 Auditor General's report, which says it is very difficult to reach the CRA by phone and even more difficult to get a complete and correct answer. We still deal with this daily. At Achen Henderson, we have been forced to add this to our service levels and have elected to do so at no additional cost to our clients.

While I'm thankful for my newfound love of chamber music and encouraged that the government recognizes the problem, we must ask ourselves if the measures in Bill C-97 are the correct approach. While advances have been made by the CRA to be more accessible and user-friendly online, it confuses us that the CRA requires five times the staff per capita to administer our tax system than the IRS does, with more hiring announced in the 2019 federal budget.

Based on our extensive experience in dealing with the CRA and helping many organizations who have experienced similar challenges, we've come to believe that the CRA's issues are cultural in nature. Defective cultures always result in operational bottlenecks. These bottlenecks are magnified by a tax system that is far too complicated for the average CRA agent or taxpayer to navigate, which is further magnified by a lack of or inadequate professional training, in our opinion.

Next, instead of taking steps toward modernizing our tax system to make it more transparent, competitive and easy to comply with and administer, Bill C-97 is a continuation by our government of using taxation to pick winners with tax breaks in various economic areas and industries. Furthermore, C-97 does nearly nothing to address tax competitiveness with the United States. Instead, the bill stretches the fabric of our tax act even further, mending holes where the fabric breaks with more patches, resulting in legislation that is impossible to comply with and administer.

lt's not all bad. There are some welcome patches in the bill, such as the improvements to the RDSP rules and the specified corporate income rules, but I can't help but wonder how many more holes will need to be patched until we consider modernizing our tax system.

The patch to the SR and ED program is a step in the right direction. lt undoubtedly makes the program more accessible to certain CCPCs. For them, this should help to tip the balance between compliance costs versus benefits and increased support. Unfortunately, these changes do not address the administration issues in the SR and ED program, and they only impact a very small portion of private companies in Canada.

While the accelerated investment incentive will be helpful to some private companies—namely those who are doing well and/or those who are able to expand or upgrade—the full expensing of M and P equipment, clean energy equipment and electric vehicles seems like boutique benefits that will only help certain private companies. We are disappointed that the accelerated CCA measures are temporary in nature.

ln closing, entrepreneurs have endured a lot these last few years. Many continue to struggle with uncertainty and excessive tax complexity, and have received very little from their government in return. While C-97 doesn't ask them to shoulder much more, it doesn't offer much in the way of assistance or stimulus.

We've seen improvements in the CRA's online offerings, but we have experienced very little improvement in hold times or service levels, and we question if Bill C-97's approach to resolving these problems is the correct one. Bill C-97 is a missed opportunity to initiate a comprehensive review of our tax system with the goals of modernization and simplification at its core.

Lastly, the accelerated CCA measures in C-97 are targeted at specific industries and temporary in nature, and we think they miss the mark on tax competitiveness with the United States.

Thank you very much for inviting me to speak today. I'd be happy to take your questions.

[The Chair, Liberal, Wayne Easter]

I will call the meeting to order. For the record, we're dealing with the order of reference of Tuesday, April 30 on Bill C-97, an act to implement certain provisions of the budget tabled in Parliament on March 19, 2019, and other measures.

We have five groups in the first panel and we have Ms. Macklin joining us by video conference.

We will start with Mr. Achen, with Achen Henderson LLP. The floor is yours.

[Dr. Pamela D. Palmater, Chair in Indigenous Governance, Department of Politics & Public Administration, Ryerson University, As an Individual]

Hello. Thanks for having me.

Kwe, ni'n teluisi Pam Palmater.

I am from the sovereign Mi'kmaq nation on unceded Mi'kmaq territory. I have been a practising lawyer for 20 years, 10 of which were spent at Justice Canada and Indian Affairs, where I received all the training in the legislative process, statutory interpretation and legislative drafting. I also have my doctorate in law on legislation that impacts indigenous people, so I have a very particular focus here, and it's very legislative, as opposed to policy-based.

I'm here to speak against Bill C-92 as it is currently drafted. I think that without substantive amendments it risks interjurisdictional chaos, legal chaos and chaos on and off reserve. In addition, of course, it won't do anything to address the humanitarian crisis.

I have several core problems with it. One is the same problem I have with Bill C-91 and Bill C-97, which is that they are pan-aboriginal legislation. By being pan-aboriginal, in fact, it discriminates against first nations because it doesn't focus on first nations' specific rights, our unique histories, our unique socio-economic conditions or our specific interests. To my mind, first nation rights should never be limited by the different legal, political and social statuses of other groups.

For example, the Métis do not suffer the same acute socio-economic conditions that first nations do. That's just a fact. We also know that in Canadian law, when you treat everyone formally the same, you end up treating the most disadvantaged unequally. What we're advocating is substantive equality that is first nations-specific, so first nations-specific legislation and not formal equality.

The other concern is that there is no independent recognition or status for first nations laws that make them paramount. They are only considered to be a federal law, no different from a bylaw under the Indian Act. For anyone who has ever worked with first nations or at Justice Canada or Indian Affairs, it is nearly impossible to get the RCMP or anyone else to enforce Indian Act bylaws.

Right now, under this legislation, instead of being paramount, first nation laws are conditional or subject to the provisions of the Charter; the Canadian Human Rights Act; section 35 of the Constitution Act; all of the limiting Supreme Court of Canada cases; the division of powers under section 91(24); coordination agreements and all of the interpretations that courts would give to those coordination agreements—of which there could be upwards of 634—and failure to abide; pre-existing provincial court definitions of “best interests of the child”, which I have to remind everyone here are court-defined and open to the same amount of racism and abuse that's already been shown in the courts against first nations children; and, of course, clauses 10 to 15 of Bill C-92 itself.

Those are a lot of things that trump first nations laws, and that's a problem. There has to be a discussion that is not only about recognizing first nations jurisdiction in and of itself but also about issues around paramountcy of laws and how these jurisdictions will work together.

My other concern is that it forces first nations to negotiate agreements with federal and provincial government, when provincial governments are the problem. The federal government is the problem in the sense of discriminatory, chronic underfunding. The Canadian Human Rights Tribunal has already talked about that. However, it's the provinces that have allowed these human rights abuses to continue despite the research and despite all of the evidence. The last people many first nations want to work with are the provinces, which commit the abuses. To actually force that is to reinforce this horrendous humanitarian crisis, and that is something that I think many first nations have already testified to being rightly against.

The biggest thing, I guess, is that despite being sold as committing funding to first nations, there's no statutory commitment for funding. It is one thing to acknowledge in a “whereas” clause that there are calls for funding, that in principle maybe we'll talk about funding or we'll figure out ways to talk about it. However, there is no statutory commitment saying the minister will fund first nations for all of the services and actually define what those services are—and leave it flexible enough.

There are no guidelines around how that funding would be provided such as population, demographics, birth rates, actual costs, first nations rights around this, which are very different from Métis and Inuit rights. There's nothing that makes Jordan's principle mandatory in this legislation, and that should, in fact, be a core part of the legislation. It's certainly a core part of the Canadian Human Rights Tribunal. There's no commitment to address the underlying root causes of child apprehension, which for first nations specifically tend to mostly be socio-economic conditions. It's not just good enough to fund aftercare or parental programs if you're not also saying we will also make a commitment to housing, food, water, education and access to health care, which are all the reasons why most of these kids are taken away to begin with.

Another core legislative problem is that the minister retains all of the powers under the act, including the power to make regulations. There's only a requirement to consult with indigenous groups, and we all know how poorly consultation works in practice. We've been subject to hundreds of court cases because the federal government still doesn't understand how to actually consult, accommodate and get consent, because all of those things work together as a package. Now with UNDRIP, the United Nations Declaration on the Rights of Indigenous Peoples, we're talking about free, prior and informed consent. This bill is the opposite of that. It's basically saying we'll talk to you but we get to do all of the regulations, and it's in the regulations where a lot more damage can be done, a lot more control can be had. Or there can be no regulations at all, because we've seen ministers promise, “we're just going to do this act and we'll solve all the problems in regulations” and, hello, no regulations. We're just going on past practice.

The global pan-indigenous consultations also skew what should be in the regulations. What is good for first nations may have nothing to do with Métis, so why would Métis have a voice in what kind of regulations will apply to first nations and vice versa? That's part of the legal problem with the pan-indigenous nature. By empowering one entity, that is, by empowering the minister throughout all of the sections of this legislation, you are in essence disempowering another. Whatever power the minister has, that's something that first nations don't have, and that's a real problem.

I do find it really disturbing that in all of this legislation, knowing how closely related forced and coerced sterilization is to child apprehensions and how they've been linked, there is no provision in here that specifically prohibits the use of forced or coerced sterilizations in any child and family services situation, especially with regard to child care

There are lots of other issue around wording. There should be a discussion about jurisdiction over off-reserve, issues around data collection, but my specific suggested amendments are that if you're going to do legislation for those first nations that consent, it needs to be specific first nations legislation whether you're talking about languages or child and family services. Only first nations are under the Indian Act. First nations have an entirely different set of rights and laws, and you cannot put them all together.

There needs to be, if there is legislation, fully funded opt-out provisions so that first nations that are already engaged with child and family services don't have to be a part of this legislation, that their choice isn't just status quo or nothing, that a fully funded alternative means if we're not funding you under this process, we will fund you under your own process.

There needs to be targeted and committed funding specifically for first nations that is based on population, inflation, costs and needs. The first nations inherent right to be self-determining over child and family services must be recognized in their own right, not attached to section 35, not attached to UNDRIP, not attached to anything external. The inherent pre-existing right needs to be the foundation of any legislation going forward.

I would also add that if you want to give real effect to this, repeal section 88 of the Indian Act to oust provincial jurisdiction over first nations altogether.

My last recommendations specifically reference UNDRIP and all of the provisions, and specifically reference the United Nations Convention on the Rights of the Child, and say that this bill should not pass as is. It needs at a minimum comprehensive review with first nations experts, including people like Dr. Cindy Blackstock, who has extensive amendments to make, and organizations like the National Association of Friendship Centres.

Thank you.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Thank you, Madam Chair. I have another couple of questions.

Both of you referred in your presentations to the work you're doing to co-develop; I hope I got that correctly. We're hearing in terms of different pieces of legislation—and, of course, most obviously Bill C-92—that a lot of people and organizations are not feeling that this is the correct way to describe the interaction and that it was certainly not co-development. We have heard that repeatedly.

I am just wondering what your mandate is around co-development. How is that progressing through time?

We know that on Bill C-97 we've heard from the AFN that there are concerns around jurisdiction. We've heard from the Assembly of Manitoba Chiefs that there has not been a meaningful consultation. There seems to be a lot of interest in making sure that consultation is actually defined as something a little more concrete and not interpreted by the government.

I think co-development is the way that the language is moving, but is the actual action behind it happening? How, in both of these departments, are you accountable to indigenous communities across the country in terms of developing the definitions of co-development and consultation?

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Thank you, Madam Chair.

Again, I will note that Bill C-97 sounds innocuous enough; and part 4, division 25, sounds as though it's just a little piece. Division 25 is 33 pages.

Therefore, first of all, I would like to make a motion that we invite the Métis National Council, the ITK and the AFN, and I know our time is short, but that we ask them to make comment and to submit their comments to this committee for consideration.

[Jean-François Tremblay]

Thank you, Madam Chair.

I also want to thank you for the opportunity to address the committee today. I would like to recognize that we are on the traditional territory of the Algonquin people.

I'd like to follow my colleague the deputy minister of Crown-Indigenous Relations and Northern Affairs Canada's remarks by addressing the impact of the bill on my department.

I will be very short, but I'm just coming back on some elements.

Through Division 25 of Bill C-97, the dissolution of Indigenous Affairs and Northern Development Canada, the federal government is establishing two departments that will be better equipped to work with indigenous partners. This is an important turning point in the relationship between indigenous peoples and Canada.

The mandate of the Department of Indigenous Services is to work collaboratively with partners to improve access to high-quality services for indigenous people. Its vision is to support and empower indigenous peoples to independently deliver services and address socio-economic conditions in their communities as they move forward on the path of self-determination.

The Minister of Indigenous Services is continuing the important work of improving the quality of services delivered to first nations, Inuit and Métis. This includes ensuring a consistent, high-quality and distinctions-based approach to the delivery of those services. A rigorous results and delivery approach is being adopted, focused on improving outcomes for indigenous people. Over time, one fundamental measure of success would be that the appropriate programs and services be increasingly delivered by indigenous people for indigenous people.

Madam Chair, transformation is about changing how we work, and that's basically what we're trying to do. We are changing how we listen and how we partner in a way that enables us to properly support the rights and self-determination of indigenous peoples.

I want to thank the committee members for their attention.

We'll be welcoming you questions.

[Daniel Watson, Deputy Minister, Department of Indian Affairs and Northern Development]

Thank you, Madam Chair. It's a pleasure to be before the committee today. Just as you have acknowledged, we too acknowledge that we're on the unceded traditional territory of the Algonquin people.

I'm pleased to be joined today by the deputy minister of Indigenous Services Canada. We'll both be speaking about Division 25 of Bill C-97, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2019 and other measures.

The Government of Canada is renewing its relationship with indigenous peoples based on the recognition of rights, respect, co-operation and partnership.

A vital component of this renewed relationship is Canada's commitment to take action to dismantle the colonial structures of the past. On August 28, 2017, the Prime Minister announced the dissolution of Indigenous and Northern Affairs Canada and the creation of two new departments. These departments are Crown-Indigenous Relations and Northern Affairs Canada and Indigenous Services Canada.

We need to begin building a truly renewed relationship with first nations, Inuit and Métis. Division 25 of Bill C-97, the budget implementation act of 2019, is a key step in the ongoing process of reconciliation. It builds on the recommendation of the Royal Commission on Aboriginal Peoples from 1996:

...the enactment of companion legislation by the Parliament of Canada legislation to create the new laws and institutions needed to implement the renewed relationship. Their combined purpose is to provide the authority and tools for Aboriginal people to structure their own political, social and economic future.

More than 20 years ago, the Royal Commission on Aboriginal Peoples called for this move to improve the delivery of services for indigenous peoples and to accelerate the movement towards self-determination. Quite simply, two departments will better serve the distinct needs of first nations, Inuit and Métis peoples. Furthermore, the creation of two departments follows the direction of the Truth and Reconciliation Commission and article 4 of the United Nations Declaration on the Rights of Indigenous Peoples, ensuring the advancement of self-determination.

Division 25 would enact two statutes to establish the Department of Crown-Indigenous Relations and Northern Affairs and the Department of Indigenous Services. These statutes define the powers, duties and functions of respective ministers, as well as repeal the Department of Indian Affairs and Northern Development Act in order to formally dissolve Indigenous and Northern Affairs Canada.

Crown-Indigenous Relations and Northern Affairs Canada will accelerate the work already begun to renew the relationship between Canada and indigenous peoples. Equally as important, the department will continue to promote the self-reliance, prosperity and well-being of the residents and communities of the north. It will continue to work to create first nations, Inuit, and Métis institutions to build the capacity needed to support the implementation of their vision of self-determination.

The Minister of Crown-Indigenous Relations guides the government's forward-looking and transformative work to create a new relationship with indigenous peoples. The minister has been tasked by the Prime Minister with better whole-of-government coordination, and the acceleration of self-government and self-determination agreements based on new policies, laws and operational practices.

As the needs of the north and northerners are distinct from those in the south, this bill would provide a basis in statute to establish the position of minister of northern affairs. The minister of northern affairs would guide the government's work in the north, including a new Arctic policy for Canada. In collaboration with the Minister of Crown-Indigenous Relations, the minister of northern affairs would continue to advance work on a shared Arctic leadership model and support northern programming, governing institutions and scientific initiatives.

This proposed legislative initiative is an important step in the process of eliminating colonial structures. It would establish a new legislative basis that will better allow for collaboration and co-operation in assisting indigenous peoples in defining their vision of self-determination.

I want to thank the committee members for their attention.

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

Thank you, Mr. Chair.

First, Mr. Mohammed, I want to thank you for your testimony. It allows us to put a face to the asylum seekers who will be dealing with the potential effects of the bill we have before us.

Regarding your story and the difficult situation you experienced, I would like to ask you the following question.

Do you think Canada would have sent you back to the United States if Bill C-97 had been in effect when you came to Canada to request asylum?

[Seidu Mohammed, Refugee Claimant, As an Individual]

Thank you.

Good morning, everyone. My name is Seidu Mohammed and I have come here from Winnipeg, Manitoba, to speak to you today.

I would like to acknowledge that the land on which we are gathered here today in Ottawa is the traditional unceded territory of the Algonquin Anishinaabe people.

I know that as a newcomer to Canada, what I am about to say today may not make everyone on this committee happy, but I feel that the heavy burden on my soul will be lifted a little if I could respectfully share my views before this honourable committee.

I would like to begin by quoting the words of a great Canadian, His Excellency the Right Honourable Vincent Massey. He spoke these words at the Canadian citizenship ceremony that was held in Winnipeg on May 20, 1955. At that time he was the first Canadian-born Governor General of Canada.

In his address to the new Canadians, His Excellency said:

What are we doing with the spirit of debate and free speech? May I tell you of an incident that happened not long ago in a Canadian city? A new-comer to this country, an educated man, who had learned the value of freedom the hard way, came here to find it. He complained, not bitterly, but sadly, that when he ventured to speak critically of any institution or practice in Canada that he could not approve, he was rebuked; “You don't need to criticize,” he was told, “you are lucky to be here at all!”

This cannot really be our view of honest criticism. We offer new-comers something more than a refuge. When we welcome new citizens, we are accepting free men and women and we invite, and urge, them to join us in using the privileges and responsibilities of free speech.

Members of the committee, and ladies and gentlemen, before coming here today I had a meeting with Mr. Bashir Khan, a well-known Winnipeg immigration and refugee lawyer. I asked him to explain to me what Bill C-97 would mean for a refugee claimant. I was shocked, saddened and very much disturbed at what he told me. I was so outraged that I could not sleep that whole night.

There are unjust laws as there are unjust men. What Bill C-97 proposes today is unjust. It is trying to amend the current Immigration and Refugee Protection Act.

The change that really bothers me is that, if this bill becomes law, if I had to come to Canada, it makes a person like me ineligible to make a refugee claim. This would have prevented me from having my claim heard by an independent decision-maker at a hearing before the Immigration and Refugee Board of Canada.

This proposed law means that many refugee claimants like I once was, who may need Canada's protection because they face persecution or a risk of torture or death in their countries of citizenship, will be denied access to Canada's refugee determination system.

However, under the new proposed law, a person like me would have access to only a pre-removal risk assessment application, which is a process that provides much less fairness than a hearing at the Immigration and Refugee Board of Canada.

Mr. Khan also told me that Legal Aid Manitoba would pay only a maximum of $530 for a pre-removal risk assessment application to a lawyer, which takes between 10 and 15 hours to complete properly. This would create a serious funding problem as it would reduce the number of lawyers who would be willing and available to take on pre-removal risk assessment applications. This would end up hurting those who are most vulnerable and in need of Canada's protection.

What I would like you to please remember about me long after I have gone back home to Winnipeg is that the people of Canada saved my life from death by lynching by homophobic mobs in Ghana, and protected me from imprisonment by the Ghanaian police because of my sexual orientation. The Canadian people did this by giving me the right and privilege to have my refugee claim heard by the independent and impartial Immigration and Refugee Board of Canada.

Before coming to Canada I went to the United States, thinking it was a country that protected and kept refugees safe. I was wrong. I was jailed in detention for nine months, with murderers, drug dealers and people who committed felonies. In detention, I was not provided a lawyer for my bond hearing, nor for my asylum hearing at the United States immigration court.

After I was released from detention, I was required to report every two weeks to an immigration and customs enforcement officer, who harassed me for documents and constantly threatened me with deportation. I felt very afraid because at that time the U.S. was deporting people.

Like many other refugees, I fled from the U.S., where I was not safe, to Canada where I would be safe. On December 24, 2016 I walked for 10 hours in the cold, across the border near Emerson, Manitoba. On that fateful night I suffered severe frostbite, which resulted in losing all of my fingers.

In closing, I ask you this question for self-reflection: Would the Canadian Parliament really want to pass a law that would deny me access to the Canadian justice system, and certainly others like me who are coming to Canada for protection? Would you want to see me deported back to Ghana?

Thank you for giving me this opportunity to speak.

[Prof. Kevin Milligan]

Great.

Thank you for your invitation.

My name is Kevin Milligan, and I am a Professor of Economics at the University of British Columbia, here in Vancouver.

I will direct my remarks to the changes to the guaranteed income supplement that are proposed in Bill C-97.

The GIS was introduced in 1967, and has grown into a vital part of Canada's retirement income security system for seniors. The GIS is focused on low-income seniors, with over two million seniors now receiving the benefit. That's about one third of all seniors in Canada. The GIS is vital to poverty alleviation among seniors. Some people arrive at retirement with too little income. Maybe they had unemployment or a health problem that made it difficult to save when they were younger. Others start retirement on a firm footing but end up outliving their savings and risk falling into poverty at older ages. In both these cases, the GIS tops up the income of these low-income seniors and allows them to have a dignified retirement.

A challenge with the GIS arises from how it is phased out with income. As someone earns more income, the GIS is reduced at rates of 50¢ to 75¢ on the dollar. If you earn one more dollar, you lose 50¢ or 75¢ off your GIS. For low-income seniors who want to work past age 65, these phase-out rates impose a very high effective tax rate on earned income.

Now, many seniors are actually pretty happy to retire from the workplace. They just put their feet up and enjoy their family. Others are unable to work because of health or family needs. For those Canadians, the GIS is there for them to top up their incomes. However, there are some older Canadians who want to continue working. Perhaps they're a new Canadian who arrived in Canada midway through their life and they need to fortify their retirement savings in order to build a nest egg. Perhaps they're someone who wants to continue to ply a trade part time into their retirement years. For those Canadians who want to work, the phase-out rates in the existing GIS can present a barrier to work.

In budget 2008, finance minister Jim Flaherty established an exemption of $3,500 for earned income in the GIS. For the first $3,500 you earned, you didn't lose anything off your GIS cheque. This exemption currently allows seniors to earn up to $3,500 a year without losing their GIS.

In budget 2019 and here in Bill C-97, Minister of Finance Bill Morneau has proposed to extend and enhance this GIS exemption in three important ways. The basic exemption is proposed to be extended up to $5,000. There will then be a partial exemption on the next $10,000 of earnings. As well, self-employment will now qualify for the exemption. Combined, this means that a senior who might be working at a part-time job or another kind of job and earning, say, $20,000 a year will now be further ahead by almost $3,000 per year.

In my assessment, this measure is well designed and should be supported for two main reasons. First, the GIS is left in place for those who need it most, that is, seniors at highest risk for poverty, and this proposal leaves in place every dollar now going to needy seniors. Second, for those able to work, this measure allows them to keep more of their earnings and build a more secure income base for their own future retirement.

Thank you for this opportunity to testify. I look forward to your questions.

[Adam Brown]

We hope this will open the door for further support for graduate students for grants to those who need them.

Finally, we were encouraged to see investments in paid, work-integrated learning opportunities. This includes the projected increase of 84,000 new job placements, as well as the expansion to offer opportunities for students in the arts, humanities and social sciences fields. In our recent paper, “Shared Perspectives: A Joint Publication on Preparing Students for the Workforce”, student organizations across the country shared their expertise on the benefits of work-integrated learning, including the added skills and long-term salary benefits for students who participate in these programs. We trust the implementation of this program will support marginalized students who encounter additional barriers in accessing these opportunities.

In an effort for further inclusion, these opportunities must also include streamlined access for international students. As stated in our pre-budget submission, Canada recommends that the federal government remove the requirement for international students to seek an additional work permit to pursue co-op and internship opportunities, and instead allow this work under the international student study permit.

I would like to thank you again for the opportunity to discuss Bill C-97, and students' impressions on budget 2019's investments in student financial aid, indigenous students, graduate students and work-integrated learning.

I look forward to your questions.

[Adam Brown, Chair, Canadian Alliance of Student Associations]

Good morning, Mr. Chair, esteemed committee members, fellow witnesses and members of the gallery.

I would like to start off by acknowledging the traditional and unceded territory of the Algonquin Anishinabeg people, where we have the privilege of gathering today.

My name is Adam Brown. I am the Chair of the Canadian Alliance of Student Associations, or CASA. I'm also the vice-president external of the University of Alberta Students' Union, and a fifth year student completing a business degree, majoring in business, economics and law.

CASA is a non-partisan, not-for-profit organization that represents over 360,000 students at colleges, universities and polytechnics across the country. Through a formal partnership with the Union étudiante du Québec we are entrusted a national student voice. We advocate for a post-secondary system that is accessible, affordable, innovative and of the highest quality.

Thank you for your invitation to appear before the committee to discuss our impressions of Bill C-97. I'm thankful to be here representing students at a time when there is a threat to student organizing especially here in Ontario. When students are unable to speak for themselves, it jeopardizes representation, accountability and democracy. Everyone suffers, especially post-secondary institutions. I'm hopeful that in the future, students will continue to have opportunities like this one.

Broadly speaking, we are very pleased to see budget 2019's investments in young Canadians, especially the government's commitments to student financial aid, indigenous students, graduate student research and work-integrated learning. I will spend the remainder of my time briefly overviewing our impression on the proposed changes within these areas.

Budget 2019 brings important changes to the Canada student loans program. We are especially excited to see the lowered interest rates and the new interest-free six-month grace period.

Furthermore, we are pleased to see the additional changes made to help modernize the Canada student loans program to better respond to the needs of vulnerable student loan borrowers. This includes the expanded grants for students with disabilities and the interest-free, payment-free, stackable leave for borrowers taking temporary leave due to parental or medical reasons, including severe mental health issues. This recognition and inclusion of students struggling with mental health challenges in the Canada student loans program is a welcome adjustment and will certainly support many students throughout their studies.

In 2016, the National College Health Assessment survey of Canadian post-secondary students reported that 46% of students felt, and I quote, “so depressed that it was difficult to function”.

The Mental Health Commission of Canada further reports that about a half of post-secondary students with mental health disabilities will experience the onset of their condition over the course of their post-secondary education. Our campuses are experiencing a mental health crisis and this recognition by the federal loans program is an important first step in addressing it. We are eager to see how this will continue to be applied across other areas of the program.

We were also very pleased to see tremendous investments in first nations, Métis and Inuit students through individualized education strategies, specialized skills and employment training, mental wellness initiatives, increased grants and bursaries, and investments in Arctic and northern education. We hope this will be a first step in adopting all of the Truth and Reconciliation Commission's calls to action, especially in providing adequate funding to end the backlog of first nations students seeking post-secondary education.

In 2018, the Assembly of First Nations identified 36,901 students who were eligible but unable to access government funding to attend a post-secondary institution. Increasing meaningful and sustained access to post-secondary education for first nations, Métis and Inuit communities is an important first step in the ongoing journey towards reconciliation.

Students are also pleased with the investments in graduate student research, including those to the Canada graduate scholarships program, which will create 500 more master's level scholarships and 167 more doctoral scholarship awards annually. These investments will give more students the chance to contribute to Canada's growth and prosperity through innovative research.

[The Chair, Liberal, Wayne Easter]

We will call the meeting to order.

Pursuant to the order of reference of Tuesday, April 30, 2019, we are dealing with Bill C-97, which is the budget implementation act.

We have several witnesses here.

I hope you can hear us, Mr. Milligan. You're by video conference. Can you hear us?