Bill C-14 (Historical)

Economic Statement Implementation Act, 2020

An Act to implement certain provisions of the economic statement tabled in Parliament on November 30, 2020 and other measures

Part 1 amends the Income Tax Act to provide additional support to families with young children as the coronavirus disease 2019 (COVID-19) pandemic progresses. It also amends the Children’s Special Allowances Act to provide a similar benefit in respect of young children under that Act. As part of the Government’s response to COVID-19, it amends the Income Tax Act to provide that an expense can qualify as a qualifying rent expense for the purposes of the Canada Emergency Rent Subsidy (CERS) when it becomes due rather than when it is paid, provided certain conditions are met.
Part 2 amends the Canada Student Loans Act to provide that, during the period that begins on April 1, 2021 and ends on March 31, 2022, no interest is payable by a borrower on a guaranteed student loan and no amount on account of interest is required to be paid by the borrower.
Part 3 amends the Canada Student Financial Assistance Act to provide that, during the period that begins on April 1, 2021 and ends on March 31, 2022, no interest is payable by a borrower on a student loan and no amount on account of interest is required to be paid by the borrower.
Part 4 amends the Apprentice Loans Act to provide that, during the period that begins on April 1, 2021 and ends on March 31, 2022, no interest is payable by a borrower on an apprentice loan and no amount on account of interest is required to be paid by a borrower.
Part 5 amends the Food and Drugs Act to authorize the Governor in Council to make regulations
(a) requiring persons to provide information to the Minister of Health; and
(b) preventing shortages of therapeutic products in Canada or alleviating those shortages or their effects, in order to protect human health.
It also amends that Act to provide that any prescribed provisions of regulations made under that Act apply to food, drugs, cosmetics and devices intended for export that would otherwise be exempt from the application of that Act.
Part 6 authorizes payments to be made out of the Consolidated Revenue Fund
(a) to the Government of Canada’s regional development agencies for the Regional Relief and Recovery Fund;
(b) in respect of specified initiatives related to health; and
(c) for the purpose of making income support payments under section 4 of the Canada Emergency Response Benefit Act.
Part 7 amends the Borrowing Authority Act to, among other things, increase the maximum amount of certain borrowings and include certain borrowings that were previously excluded in the calculation of that amount. It also makes a related amendment to the Financial Administration Act.

Economic Statement Implementation Act, 2020

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

We need to give an opportunity for one further question.

The hon. member for Hamilton Mountain.

[Scott Duvall, NDP, Hamilton Mountain, ON]

Madam Speaker, a year ago, the government, after much pushing by the NDP, realized that seniors and people with disabilities needed financial help because of the higher costs they were facing. One year later, they are facing even higher costs. Food has skyrocketed as have the costs of rent, heat and hydro. Now we are into a third wave, and in Ontario we are in a complete lockdown. Does the member not agree that there has to be something in there, immediately, for our low-income seniors and people with disabilities until we find a permanent resolution?

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Madam Speaker, this goes back to the point of costs increasing for everyone. We have called for the government to halt all tax increases during this time. Tax increases make the costs go up for everyone. One of the most prominent ones is the increase of carbon tax, which we know just—

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

Resuming debate, the hon. member for Northumberland—Peterborough South.

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Madam Speaker, it is my privilege today to rise virtually in the House of Commons to speak to Bill C-14, which enacts certain fiscal components of the fall fiscal update.

I want to begin by speaking about some of the advantages of the bill. Steps like raising the Canada child benefit are essential to maintaining gender equality during this pandemic. When lockdowns happened, it has been very difficult for women to find child care for their children. It is clear that the pandemic has disproportionately affected women.

There is no doubt the relief for student loans will help students. As our students graduate and struggle to find jobs, it is clear that they, too, have been deeply affected by the pandemic and by the high employment rates that have come with it.

We have also continued to call for changes to the rent subsidy program, some of which has been included in Bill C-14.

While the legislation does make some important changes, in many ways it also misses the mark. While a certain amount of spending and investment can be expected, and actually encouraged during these times, Bill C-14 would give the government unfettered power to put Canada in a precarious situation. It would give the government the power of borrowing without the appropriate accountability and oversight.

The fact of the matter is that the COVID pandemic is far from over. In fact, Canada just reached an ominous milestone. For the first time in the global pandemic, Canada has reported more new COVID-19 cases per capita than the United States of America. How is this possible? How is it that many countries across the world are beginning to reopen their economies, beginning a new normal, while we hit a third wave that seems to be even worse than the ones that preceded it?

The answer is simple. We do not have enough vaccines. The procurement efforts have been botched and have been a failure. It has come with a deadly cost to Canadians. Whereas our counterparts in the U.S., UK and Israel are beginning to reopen, across Canada, we are re-entering devastating lockdowns.

It is with great sadness that I speak about the devastating impact this has had on our people. Many Canadians, including those in my riding of Northumberland—Peterborough South, have been forced to shut down for the better part of a year. According to Stats Canada, 60% of businesses reported a drop in revenue between 2020 and 2019, with certain industries being affected harder than others.

My riding of Northumberland—Peterborough South is home to some of the most beautiful landscapes and some of the most charming small towns in all of Ontario. Because of this, many of my constituents rely heavily on the tourism sector to survive and thrive. The hospitality, tourism sector, unfortunately, has been one of the hardest hit in Canada.

New statistics are now suggesting that 50% of Canadians are on the brink of insolvency. As we face more lockdowns, many Canadians are barely holding on and are continuing to rely on federal stimulus, like the CERB and CRB.

Mark Rosen, chair of the Canadian Association of Insolvency and Restructuring Professionals, recently had this to say.

I am having trouble speaking, Madam Speaker, due to a member not having his mute on.

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

Could the hon. member for Simcoe—Grey please mute his microphone.

The hon. member may proceed.

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Madam Speaker, what we cannot see in the insolvency data is how things will changes as the taps are turned off, which brings about a very important point. The government's programs have created a bridge, but it needs to be a bridge to a better day. At the end of the day, the programs are a Band-Aid and they are not a substitute for prolonged, strong economic activities and economic opportunities. They will not be able to, in the long term, replace the lost income that people face over our government's inability to procure vaccines.

Our people need jobs. We need to bring work and economic opportunities back to Canadians. While the Conservatives have supported them and, indeed, they were necessary, the benefits have to be a bridge to something. They cannot be a bridge to nowhere. Our people should not have to chose between their health and insolvency. We need a safe plan to reopen our economy, a plan that includes vaccinating our population as soon as possible.

We also need to ensure this plan will not hurt Canadians for generations to come. As currently written, Bill C-14 is a $600-billion blank cheque to allow the Canadian government to spend how it would like. With no accountability for the spending or oversight, this will undoubtedly hurt Canadians for years to come. Large budgets, deficits and debt are all serious issues, not only for our government but for all Canadians. Interest payments are a major consequence of that.

Governments must make interest payments on their debt similar to how households must pay interest on borrowing-related mortgages, vehicles and credit card spending. Revenue directed toward interest payments means that in the future there will be less money available for tax relief or government programs, such as health care, education and social services. In reality, to pay off these interest payments, the government will likely have to raise taxes, raise interest rates and cut spending on essential government programs. This will be a painful burden for Canadians as many are already so close to insolvency.

The government needs to detail its long-term plan for the economic recovery. As former U.S. treasury secretary Larry Summers has often said, growth not consumption must be a priority of expansionary fiscal policy. In fact, our own deputy finance minister Michael Sabia agreed that economic growth was absolutely critical to the future prosperity of our country.

The expansion of the economy will create much-needed economic opportunities for all. Most important, that growth will help those in an economically challenging position. The impact of growth, or lack thereof, can be illustrated in the last six years with what the Liberal government has done to our most vulnerable. During a period of record-low economic growth, Canadian billionaires have done all right, as my colleagues in the NDP have frequently and rightfully pointed out.

The impact of low economic growth is nearly always disproportionately felt by those in economically precarious positions, while billionaires and Liberal well-connected insiders have done okay. They often have the connections and the resources to pivot away from economic challenges. Meanwhile, Canadian workers are stuck shouldering the brunt of a shrinking economy as they lose their jobs, close their businesses and even lose their homes.

The good news is that while a shrinking economy can create havoc, poverty and hardship, an expanding economy can equally create prosperity, wealth and, in some instances, even happiness. Nearly all economists on the left and the right agree that a growing economy is our best defence against unemployment and poverty. How do we achieve that? We need to create an environment where private actors are rewarded and recognized for effectively contributing their talents and their efforts to society through efficient markets. That may sound complicated, but it really is not. All that really means is that every Canadian going to work, whether a CEO, a sales professional, a clerk or a tradesperson, feels as though he or she is getting a fair shake.

Governments can play a positive role in achieving confidence in the economy. They can put in place the regulations to ensure that actors are competing in an ethical and sustainable manner. This is absolutely a critical role, and all strong economies require some level of regulation and taxation to ensure equity and justice. However, the Liberal government, nor any government in history, cannot create economic growth. They merely put in place the conditions required for growth.

It is the private sector, everyday Canadians, who power economic growth through relentless determination, endless innovation and infinite work ethic, as they strive to achieve their dreams to buy homes, to own a business, to send their children to university and to help achieve a stronger, more prosperous Canada for all.

While governments cannot create economic growth, they can destroy it. The reality is that overly expansive governments suck up the resources, the oxygen, of the free market economy from the private sector, depriving businesses and individuals of much-needed capital to fuel their economic activity. These same governments over-regulate and suffocate the energy and drive of small business and destroy the dreams of millions. They erode the rewards and recognition of work to the point where an individual's desire to work is reduced. The last 100 years of history are littered with governments that have destroyed their own economies through policies that expand government at the cost of their citizens. From the USSR to Cuba to Venezuela, we have seen poverty and destruction caused by overinflated government policies.

Why, then, in this time of extreme economic insecurity, would the government ask for a permanent increase to the debt ceiling of $600 billion, a debt that would ultimately be financed by Canadians? It is a burden that will diminish our prospects for a growing and prosperous economy by starving it of the resources Canadians need to start businesses and create jobs and by disincentivizing work. There will also be ever-increasing taxation. What Canadians need now is a rapidly expanding economy, not an ever-expanding debt.

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Madam Speaker, I have two quick questions for the member.

First, I noticed he chose his words very carefully when he was talking about the last measure of the bill. He said that it gives the government the power to borrow, and he did not reference the power to spend. Would he confirm that the government cannot spend?

Second, I noticed that when he was talking about vaccination rates among G7 countries, he conveniently cherry-picked the two that happen to be ahead of us, the U.S.A. and the United Kingdom. We are ahead of the rest, which are Italy, France, Germany, Australia and Japan. I wonder if the member can explain why he chose to cherry-pick those two particular countries?

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Madam Speaker, the fact is that when we look at completely vaccinated individuals, Canada actually ranks quite low. Obviously no one is fully vaccinated, inoculated or protected, to the extent that vaccines can do this, until they have received both doses, and Canada is well behind. When we look at other countries, such as the U.K. and the U.S., they are fully opening, as has been reported in the media by CNN's Jake Tapper. Canada is falling behind.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Madam Speaker, I thank the hon. member for his speech.

I would like to raise two points. First, we are obviously all concerned about the debt. Second, my learned colleague from Joliette raised a specific point a little earlier, stating that each expenditure must be approved.

Is the member aware of this and does he believe it makes sense? I would like his opinion on that. I would also like to know what he thinks about the lack of support for the tourism and cultural industries and for small organizations that are really struggling. There are some in each of our ridings.

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Madam Speaker, I will start with the second part of the question. I certainly believe in supporting the arts. The Capitol Theatre and the many other arts institutions in Northumberland—Peterborough South certainly require support. The pandemic has been very difficult for them.

On the second part, I liken the member's point to the individual—

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

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

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

Madam Speaker, the interpretation is not working.

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

Interpretation is working now.

The hon. member for Northumberland—Peterborough South.

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Madam Speaker, the arts are incredibly important. The Capitol Theatre is in my riding, as are many other great arts institutions, and they have been hit so hard. We would agree that the pandemic has been very difficult on them.

As to the second part, I would like to use an analogy about individuals. If I took out a line of credit for half a million dollars, it would be an important household decision. I dare say that my spouse would not be too happy if I did not receive her approval before getting a $500,000 line of credit, even though I had not identified how I would spend it.