Bill C-208 (Historical)

An Act to amend the Income Tax Act (transfer of small business or family farm or fishing corporation)

This enactment amends the Income Tax Act in order to provide that, in the case of qualified small business corporation shares and shares of the capital stock of a family farm or fishing corporation, siblings are deemed not to be dealing at arm’s length and to be related, and that, under certain conditions, the transfer of those shares by a taxpayer to the taxpayer’s child or grandchild who is 18 years of age or older is to be excluded from the anti-avoidance rule of section 84.‍1.

Economic and Fiscal Update Implementation Act, 2021

[Larry Maguire, Conservative, Brandon—Souris, MB]

Madam Speaker, I want to ask my colleague from the Bloc a question with regard to small businesses. He and a member from the NDP, both of whom are in the House today, supported and helped me with Bill C-208 on qualifying small businesses and interfamily transfers last summer. I wonder if he could just remind my colleague from Winnipeg North that major accounting firms in Canada said that passing this bill did more for small businesses in Canada than probably any other finance decision for those qualifying small businesses in the last 25 years. I wonder if he could also remind my colleagues on the Liberal side of the House that it is this kind of support for small businesses that is really needed, as opposed to some of the things the Liberals have talked about. We know polices were needed to get things going. The problem with the government spending now is that only part of it can be traced to the need to keep small businesses and families going through the pandemic.

[Glen Motz, Conservative, Medicine Hat—Cardston—Warner, AB]

Mr. Speaker, before I begin today, I just want to take a moment to thank our former leader, the member for Durham. He worked hard for the Conservative caucus and for the country. He served in the military, and as an MP in cabinet and opposition leader. I thank him for his service and dedication to our party and country, and I thank Rebecca and his family for their sacrifices.

I am pleased to rise today to speak on Bill C-8.

Expectations were high after the unnecessary election that cost taxpayers over $600 million, which was called during a pandemic in an attempt by the Prime Minister and his government to further their own self-interests. However, the results were clear. Canadians, 67% to be exact, voted against giving the Liberals more power and overwhelmingly against the corruption scandals and overreach by the Liberals by a 2:1 margin.

What have we seen since the election? The Prime Minister took a vacation during the first National Day for Truth and Reconciliation. He delayed the return of Parliament by 60 days and he broke his promise to deliver action in the first 100 days. Instead of rebuilding the country at a time of crisis, the Prime Minister has repeatedly alienated western and rural Canadians. He has played the worst kind of divisive politics and attempted to label those who disagree with him as being hateful. No responsible person, let alone the leader of our country, should ever throw around words like “misogynist” or “racist” so casually and recklessly.

No one knows how easily the Liberals will sacrifice good, hard-working people than Albertans. Almost every year, the Liberals have squeezed more and more of Alberta's jobs out of the province. They then killed four pipelines with their no more pipelines act. They have ignored the cries of indigenous communities who rely on resource development agreements. They have created political problems with key trading partners that hurt farmers in the west and have sought to fight Alberta's provincial government at their return. The irony is that their drive is to make a green, clean energy grid, but the likelihood is of that is delayed, even by a decade or more, as many energy companies who invested heavily in renewable energy and new technologies left the country or simply pushed their investments to another location.

While providing some money in the economic and fiscal update for COVID testing, for business loans and school ventilation was good, the update was silent on the top demand from provinces for the last two years. They needed new funding for health care. The pandemic has strained health care workers, hospitals and the overall system to the point of near breaking, with thousands if not tens of thousands of delayed surgeries and procedures. There is no doubt that there will be many more preventative measures that have been missed and undetected illnesses that will demand emergency action instead of early intervention. All of that will drive up health care costs, with health care costs all but guaranteed to increase.

Provinces are on even more shaky financial ground. For example, Newfoundland has already had a bailout of sorts while other provinces could even be headed towards economic crisis after the debt piled on during the pandemic. With the excessive spending before and during the pandemic, the federal government is not well positioned to help. According to the Parliamentary Budget Officer, one-third, or about $177 billion, of pandemic spending was unrelated to the pandemic response plan, which is about six years of military spending, six years of health care in Alberta or more than double provincial and territorial transfers.

I come from a riding with a large rural economy where farmers have endured extreme hardships from a severe drought and the impacts of the pandemic. Our agricultural sector is critical to our trade, our international relations, our domestic economy and our rural economy for that matter.

Farmers and rural Canada were ignored in the throne speech, and we do not know why. For the last five years, they have paid enormous carbon tax bills, some in the tens of thousands of dollars. Their costs have been driven up, and the costs of food products in Canada are continuing to rise.

These costs hurt farmers who cannot compete with America or other countries in costs. The prices hurt Canadian food manufacturers who want to use Canadian farm products, but they also have to do with the high cost of buying from U.S. competitors. They hurt small business owners who face higher downstream costs, as well as continually higher costs from employment taxes, the GST, etc. Who do they pass those costs on to? It is to consumers: to families, with higher grocery bills.

The government made a promise to improve, and to help farmers and everyone who consumes Canadian farm products. Conservatives provided a clear policy option in Bill C-208 that would have eliminated carbon taxes for on-farm activities. That exemption would not have required new administration costs. It would not have increased costs for businesses to track and calculate those expenses.

The Minister of Finance, who is from downtown Toronto, had a better idea. Instead of a simple solution that was easy to understand, practical to implement and would cut costs, she would create a complex tax regulation that could change on a political whim. It would not reduce costs at all and would ultimately keep prices higher for consumers, while providing little to no relief for farmers.

According to the Parliamentary Budget Officer, instead of tens of thousands of dollars less in taxes, farmers will get a rebate of between $1.47 and $1.73 per $1,000 spent on eligible farm activities. The generosity of the government to the farming community is amazing. Who determined those eligible farming activities? It was the government. What is eligible? We do not know. It is entirely up to the minister and the government.

There are many serious issues facing Canada right now that need immediate action. We have a drug addiction crisis. We have a violent crime and criminal gang shooting crisis. Canada is increasingly alienated by our allies, while facing greater global pressures and hostility. Our military is lacking key trades, trained personnel and equipment, and plans to meet its increased mandate.

Inflation is quickly eating away at working-class and lower-income Canadians. Anger, resentment and division are increasing at an alarming rate across the country, spurred on by the indifference and rhetoric from even our Prime Minister. Small businesses are struggling to hang on, and are unable to find workers. Canadian shelves are emptier and have fewer options than ever before. Worker losses and capacities increase and decrease the supply of goods.

Private-sector investment has dropped massively since 2015 and has hit records lows, suggesting Canada could face significant competitive challenges in the years ahead. Our consumer energy prices are among the highest in developed countries, and our housing prices are some of the top in the world.

We need better from the government. We need the government to swallow its pride and stop slapping band-aid solutions onto its broken policies in an attempt to address the problem. Crime is up, and the witch hunt on law-abiding firearms owners, while ignoring gangs and gun smuggling, needs to end before we can actually address crime. Inflation is up, due in large part to unchecked, uncontrolled and wasteful spending by the Liberals. We need a plan to get back to balance and to manage spending properly.

If we fix the policies that created these issues, we can begin to solve the problem. However, without acknowledging their mistakes and their failures, the Liberals will never be able to govern Canada to better days. They will be forever stuck trying to distract Canadians with social media campaigns, hashtags and undelivered commitments.

Better is possible. The people of my riding, and all Canadians, deserve to be heard and respected by their government. They deserve a clear economic recovery plan for their communities and our country. They deserve a plan to manage inflation, reduce crime, reduce everyday costs and deal with our national security. Canadians should not have to wait the better part of a decade for that to happen.

Resumption of Debate on Address in Reply

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

Madam Speaker, I thank my valued colleague from Brandon-Souris for his speech. I will once again have the privilege of changing the dynamic in the House so that we stop focusing on who did what and who did it better and start focusing on constructive feedback and the content.

I would like my colleague from Brandon—Souris to tell me about the minister's mandate letter. He is right in saying that the throne speech contains absolutely nothing for the farming community; we agree on that. That is why I went back to the document, which contained a little bit of content. The minister's mandate letter talks about facilitating the transfer of family farms. We managed to work together to pass a historic law during the previous Parliament. I thank my colleague again for promoting and introducing this bill.

I would like to know if he is concerned about that note in the mandate letter. When the Liberals want to try to make changes to the great work we have done, what aspect of the law does he think we need to keep an eye on?

[Larry Maguire, Conservative, Brandon—Souris, MB]

Madam Speaker, it is my privilege to stand in the House for the first time since the election to provide a speech. It has been since last fall, so I want to thank the citizens of Brandon—Souris for allowing me the privilege of representing them here in the House of Commons again.

I want to speak to the throne speech today. It seems like a lifetime ago when the throne speech was tabled, only last November, and it has only given me more time to reflect on how disappointing it was to hear the lack of vision from the government for farmers, our agri-food sector and rural Canada, just as my colleague for Medicine Hat—Cardston—Warner indicated. The throne speech is not just a symbolic document wrapped up in pomp and circumstance. It is the government's first opportunity in a new Parliament to lay out its blueprint for the coming years.

I can assure members that the ministers, the deputy ministers, the Privy Council Office and the entire public service take this document quite seriously. Moving forward, they will use the throne speech, coupled with ministerial mandate letters, to set cabinet priorities and determine which government bills will be tabled and then debated. As someone who represents a vast rural constituency, where countless jobs and families' livelihoods are directly tied to the agriculture sector, I must inform these people that they do not exist, according to the Liberal throne speech. They are the invisible Canadians, out there in rural Canada. As someone who farmed for decades, I never thought I would see the day that the Government of Canada would so nonchalantly forget an industry that is so integral to our country.

Who does the government think raises and grows the food we put on the tables? We are all aware that the issue of the day is who transports that food, as well.

Canada has the potential to become a food powerhouse on the world stage, yet there is not a mention of the agricultural industry's potential. With the global population growing and wealth growing, the need for trusted food sources will only get larger. To meet the targets laid out in the Barton Report, we need a vision and a plan to get there. In the coming months it will have been four years since that report, and we have yet to see an action plan to seize the tremendous potential of our agricultural sector. Some provinces have done a better job of that than the federal government has. It has a lot of people wondering, “Where is the beef?” How do they deliver? There are over two million Canadians whose jobs are connected to the agri-food sector. It is worth billions of dollars to our economy, and its potential for growth is as large as the prairie sky.

In Manitoba, we have thousands of farmers. We also have value-added processing for such things as vegetables, dairy, sunflowers, flax seed, canola, peas, potatoes, beef and pork. If we want to grow our agri-food sector, it starts at the farm. To support farm families, I took concrete action in the last Parliament by introducing my private member's bill, Bill C-208. Despite the Liberals' attempt to quash my bill, it is now the law of the land. Bill C-208 sends a message of hope to young farmers who want to carry on what their families started. No longer will parents be given a false choice between a larger retirement package after selling to a stranger or a massive tax bill after selling to a family member, their own child or grandchild.

I will remind my Liberal colleagues that their government is still sowing confusion, as it said it was going to amend Bill C-208 sometime in November, 2021. That date has come and gone, and we are now into a new tax year. That means the government will make retroactive tax changes back to November, 2021, but it will not tell us what it actually plans until some later date. That level of uncertainty is the last thing farm families and small businesses need right now in Canada.

I was looking for a clear commitment in the throne speech on what initiatives the Liberal government planned to introduce in this Parliament. I was looking for practical steps the government would take to grow our beef herd and to support our livestock producers, who are still struggling as the drought has depleted pastures and feed costs continue to rise. I wanted to see additional supports to assist farmers and producers impacted by the drought by expediting access to business risk management programs and making up any provincial funding shortfalls. I wanted to see a commitment to amend existing laws to allow livestock owners to use local abattoirs.

We need to make permanent the temporary measures that allowed provincial authorities to enable trade across the country, and to use their abattoirs for products that would move across provincial borders. These are common-sense policies the Liberals could have announced in the throne speech that could have been welcomed across the country.

It is also clear that we need to reform and improve business risk management programs, particularly AgriInvest and AgriRecovery, as my colleague just mentioned. The throne speech should have included a commitment to bring agricultural stakeholders together for a summit-like meeting with the Minister of Agriculture to develop a way forward on insurance programs such as AgriStability.

Instead of just fully exempting farmers from the carbon tax, the Liberals announced a complicated rebate system that has been widely panned as unfair. The Grain Growers of Canada reported that some farmers are only going to get back 20% to 30% of the taxes they paid. To fix this once and for all, the Liberals could have just exempted farmers from the carbon tax in its entirety. There would be no need for rebates, no need for paperwork and no need to create unnecessary red tape. Rising input costs, such as skyrocketing fuel and fertilizer prices, are already causing financial challenges. The one thing the government could do to help farmers overnight is just exempt them from that carbon tax.

The throne speech also did not contain any clarity about the government's plans to reduce fertilizer emissions by 30%. As many western farmers can attest, any time the Liberal government muses about making changes that will impact their operations or livelihoods, there is always a sense of apprehension. As a farmer, as a farm leader and then as an elected representative, I know the disconnect between those in Ottawa who think they know best and those who sow their fields.

It was not long ago that the Liberals called farmers tax cheats. Their 2017 proposed tax changes would have cost farm families thousands of dollars. Thanks to the farmers and entrepreneurs who loudly opposed those tax changes, and the fact that Bill Morneau is no longer the finance minister, those tax hikes are yesterday's news.

Whether the Liberals are attempting to eliminate the deferred grain tickets or doing everything in their power to delay the implementation of my private member's bill, there is enough evidence to suggest farmers' anxieties are well-founded. No details have been announced on the Liberals' plans to reduce fertilizer emissions, and this has caused all sorts of consternation within the farming community. Instead of working collaboratively with farmers, the Liberals have decided to stick out this arbitrary number with zero information on how they plan to implement it. This is not the right way to govern, nor does it inspire any confidence in the thousands of farm families across our country.

A report just released by Meyers Norris Penny outlined the potential impact of reducing fertilizer emissions by 30%, and the numbers are staggering. They have calculated that for corn, canola and spring wheat, there would be a total value of lost production of 10.4 billion bushels per year by 2030. As the report stated, this would have a dramatic impact on Canada's ability to fill domestic processing capacity. This would also reduce our ability to export, as well.

I would be remiss not to talk about the logistical challenges that farmers and agri-food processors have faced due to either the B.C. floods, the pandemic or the fact we need to vastly expand our infrastructure system. As the recent Auditor General's report stated, the Liberal government's investing in Canada plan was unable to provide meaningful public reporting on overall progress. If Canadian farmers and agri-food processors are going to continue to grow and export around the world, we need to make sure the roads, bridges, highways, railways and ports have the capacity for them to do so.

I raise these agricultural issues as I fear that farmers do not have a voice in the Liberal government. I worry their concerns fall on deaf ears. Unfortunately, the Liberal throne speech was silent on these matters and it lacked any bold vision for the sector. There is life in rural Canada. There is hope, and there is a strong future. I implore the Liberal government not to forget about farmers. Do not take them for granted. Let us work together and implement many of the ideas our Conservative team has been advocating for. Farmers are not asking for the moon. They just want to be treated fairly and want a government that is willing to listen.

Government Business No. 4—An Act to Provide Further Support in Response to COVID-19

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Madam Speaker, I certainly appreciate the member's contributions to the debate today.

In June of last year, when it came to Bill C-208, a bill that would allow someone to sell their family farm or fishing enterprise to their children and be treated the same as if selling to someone at arm's length, the government and the minister said that the coming into force date was not specified in that piece of legislation and therefore they would reinterpret it as coming into force this year.

In this bill, at least Finance Canada seems to have learned its lesson, and there is no coming into force date for the amendments here. Would the member agree that it is important for the government, and in this case particularly Finance Canada, to honour the will of Parliament and if a piece of legislation has no coming into force date when the government amends a current act, that act be deemed, once it has gone through both Houses and received royal assent, the law of the land?

Does the member believe that Finance Canada and the government have learned their lesson, and are doing that in Bill C-2?

Budget Implementation Act, 2021, No. 1

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

Madam Speaker, I thank my esteemed colleague from Drummond for his question.

My answer will be mixed. There have indeed been actions taken to support farmers, but often they are inadequate one-offs, involving meagre amounts that, I just said earlier, are used to make “mini-announcements” rather than bring in anything permanent.

There are requests, and I will give three examples. If the House feels strongly about the question asked by my colleague from Drummond and wants to do something for the farming community, Bill C‑216 protects supply management once and for all. All parties voted overwhelmingly in favour of this bill, which was referred to committee and must now come back to the House. I wish it had come back before we leave.

Bill C‑208 is currently before the Senate. I find it very fishy that it is taking so long. I hope the Senate passes it before Parliament rises.

There are several measures like that.

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

Madam Speaker, I am pleased to be speaking this morning about Bill C-30, budget implementation act, 2021, no. 1.

My colleagues will recall that the Bloc Québécois voted against the budget because some of our important conditions were not included. However, we will be voting in favour of the budget implementation bill, which contains plenty of promising measures.

All the same, that does not mean that we will be giving up the fight, in particular with respect to health transfers. In my opinion, it is inconceivable that a government that is running a deficit of more than $350 billion this year still refuses to help the levels of government that have the responsibilities stipulated in the original agreement.

The federal government used to pay 50% of the costs, not 22%. At this rate, it will only be paying 20% five years from now. What the provinces and Quebec are unanimously asking for is 35%. That corresponds to $28 billion, which by purest coincidence is equal to the leeway that the government decided to subtract from its deficit. I certainly think the Liberals could afford this.

Our other major condition was a decent increase in old age pensions. I am not talking about the increase of about $1.75 given to those who received the largest increase. That will just about buy them one extra coffee a year. I am talking about a decent increase of $110 a month, which is not asking much.

It feels like we keep repeating the same things. Sometimes repetition is the only way to get a point across. At a time when the government wants to launch a recovery plan involving more than $100 billion in spending, how can it justify not giving seniors some breathing room by providing $110 a month?

It is a small amount. These people will not be putting it in the bank for later, they will be spending it. That is exactly what we need for our economy this year. We need a recovery, some breathing room, help for these people who were hit so hard by the pandemic.

Another concern we have about Bill C-30 is that it lays the foundation for a Canadian securities regulation regime. Historically, the Bloc Québécois has always been opposed to this, and we are not alone. The Quebec government and Quebec's business community are unanimous in rejecting the idea. The Fédération des chambres de commerce du Québec, the Chamber of Commerce of Metropolitan Montreal, Finance Montréal, the International Financial Center, Mouvement Desjardins, the Fonds de solidarité FTQ and most companies, including Air Transat, Transcontinental, Canam, Québecor, Metro, La Capitale, Cogeco and Molson, all agree.

Why are all of these economic stakeholders in Quebec saying that Quebec should not be losing more control to Ontario?

It is because this amounts to an attempt to move a strong financial centre to Toronto. I know that I am in the House, that I must remain calm and watch my language, but it is pretty darn hard to stay calm when faced with this constant financial expropriation. What the government wants to do is to make Quebeckers dependent, so that they think they need the rest of Canada and that they want to remain a part of it. That is the bottom line.

Why fix something that is not broken?

Quebec's securities commission is extremely effective, and it is important to have a strong economic centre. This is the institution that insisted on keeping the Montreal Stock Exchange in Montreal even after it was sold to the Toronto Stock Exchange. I will be so bold as to say that, if it had been up to Toronto, there would not be a stock exchange in Montreal anymore.

There are many jobs involved. The financial sector accounts for 150,000 jobs and contributes $20 billion to the GDP. Montreal is the 13th-largest financial centre in the world. The 578 head offices in Quebec account for 50,000 jobs. Since these are head offices, these jobs are not just ordinary jobs. They are 50,000 well-paying jobs that create more jobs. When a company's head office is located in Quebec, because that is where the financial centres are and where decisions are made, the company tends to hire within Quebec and to adapt its strategy accordingly.

That is what the federal government wants to eliminate. Well, I have news for the government: We will not allow it. We will work on it and propose amendments. I hope that the people in the government will see reason and defend Quebec's interests. I would remind them that there are elected officials from Quebec in their party.

Of course, Bill C-30 is massive and does not cover everything. We do applaud the extension of the special assistance programs, such as the Canada emergency wage subsidy and the Canada emergency commercial rent assistance program, until September 25.

However, I think that the rates are dropping rapidly. Companies are not quite back on their feet yet; we need to make sure that we do not take this assistance away too soon, since companies need predictability. Last week, I received more calls from companies that have held on so far, but they are telling me that they may not be able to hold on for much longer. This is not the time to cut them off.

The creation of a hiring program is a good idea. Disallowing bonuses for senior executives of companies that received the wage subsidy is an excellent idea. I hope the rule will be applied to the letter.

Speaking of wage subsidies, I cannot help but make a brief interjection. It is a shame that I cannot refer to the presence of members in the House, because I would have definitely named someone. My Conservative colleague who spoke previously referred to the wage subsidy several times, bemoaning the fact that the government gave wage subsidies to companies that give bonuses, and yet the Conservatives, the Liberals and the NDP all received the wage subsidy. They have the gall to make accusations and feign outrage. It is crazy.

Sometimes I think I am dreaming. I hear a member say something and I wonder whether he really dared repeat it. Members ought to have a little decency. I am launching an appeal to the three political parties that misappropriated public funds. That is the polite way of saying what I think. I am asking them to give the money back, because it is Quebec and Canadian taxpayer money. They should not use public funds for campaign purposes, especially if they refuse to amend the laws governing the public financing of political parties. It is doubly sickening.

They announced measures in the budget to tackle tax avoidance. That is fine, but they seem pretty minor to me. More needs to be done. I know that they are sick and tired of hearing us talk about this because it is a really sore spot for them, but when are they going to do something about tax havens? If they had the courage to take action in this matter, we would have a budget surplus rather than a deficit. Let us get moving on this.

The argument that government members cannot vote in favour of Bill C-208, which aims to facilitate the transfer of SMEs, including farms, because this constitutes tax avoidance really raises my hackles. It is mind-boggling.

There are a few small positive measures on zero-emission vehicles. It is also an excellent idea to extend the tax deferral on patronage dividends for cooperatives. The industry has been asking for this for ages. However, I wonder why they have not made this measure permanent rather than extending it for another five years.

Would members like to know the real reason? The government wants to keep these people dependent and in line. In three and a half years, or four years, they will have to start begging their generous government to extend the measures again. People are more compliant in those situations. The government wants to keep us dependent, and so do the Canadian securities regulators.

The Bloc Québécois will be there to fight this.

Income Tax Act

[Larry Maguire, Conservative, Brandon—Souris, MB]

Mr. Speaker, later this afternoon we will have the final vote on my private member's bill, Bill C-208. The purpose of this bill is straightforward. It will level the playing field by giving families the exact same tax treatment when they transfer their businesses or operations to their children as when they transfer it to a stranger. It would result in more locally owned and operated businesses, the type of businesses that are deeply involved in their communities and provide steady employment for countless individuals.

Bill C-208 sends a message of hope to young farmers who want to carry on what their families started. No longer will parents be given the false choice of having to choose between a larger retirement package after selling to a stranger, or a massive tax bill after selling to a family member, their own child or grandchild.

I urge all members to vote in favour of Bill C-208 and bring tax fairness to the Income Tax Act for all qualifying small businesses.

Agriculture and Agri-Food

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

Mr. Speaker, every year, hundreds of farms are closing down in Quebec. It is obvious that there is an urgent need to encourage the next generation of farmers. However, the federal government is making it more profitable for a farmer to sell their business to outside shareholders than to their own family. The farmer can either sell their land to a third party and secure a decent retirement, since the sale will qualify for the lifetime capital gains exemption, or sell it to their family and forgo a comfortable retirement.

Tomorrow we will have the opportunity to rectify this situation that the Bloc Québécois has opposed for 15 years now. Bill C-208, which aims to facilitate the transfer of businesses, will be put to a vote. I personally co-sponsored this bill, because the Bloc Québécois votes in favour of initiatives that are good for Quebec farmers. That is what being reliable is all about. This vote will be a moment of truth for the future of farming in Quebec, and I urge all parties to truly support the next generation of farmers.

Budget Implementation Act, 2021, No. 1

[Richard Lehoux, Conservative, Beauce, QC]

Mr. Speaker, I am pleased to rise in the House today to speak to budget 2021.

As I always remind my constituents, I am Beauce's representative in Ottawa, not Ottawa's representative in Beauce. That is why I would like to share with the House my many concerns about this budget and the changes that I would like to see made for my constituents and all Canadians.

The fact that the government took two years to announce its budget is unbelievable. One would think that, since the budget took two full years to develop, it would not have so many glaring problems, but it is important to remember that this government is constantly embroiled in scandal and other types of distractions.

Since coming to Ottawa during the last election, I have seen how complicated it is to work in federal politics. Everything moves at a snail's pace. It is extremely discouraging to have such good intentions but to feel as though this government never makes any progress.

As the associate shadow minister for rural economic development, I examined the budget carefully, and there are many things I would like to talk about today.

I would like to start by talking about the labour shortage that is affecting Quebec businesses. Business people across the country have found very creative ways to keep their businesses afloat during these uncertain times. Unfortunately, in rural areas, even before the pandemic, it has always been extremely difficult to fill all the available positions. The government should expand and enhance the existing temporary and seasonal worker programs to help fill the gap for these businesses.

The government also needs to cut the red tape associated with hiring. In some cases, businesses have to deal with three different departments to bring in the workers they themselves recruited in foreign countries. Current departmental wait times are destroying our businesses. The government cannot keep using the pandemic as an excuse. It is time for these ministers to stop gearing up for their next election campaign and start getting to work on these files.

Secondly, I want to talk about something that I have been passionate about for many years and that is public transportation in rural areas. The problem is that the money is simply not there. When the government promises to provide funding to the provinces, most of that funding ends up in major urban centres. With the population aging, keeping seniors in their rural municipalities could be easier with access to a public transportation system that would give them greater autonomy. In the absence of such transportation services, seniors choose to move closer to hospitals and health care centres for a better sense of security.

We see the same thing with newcomers. They also need transportation. In the context of a labour shortage, many businesses are recruiting foreign workers. It is the employer's responsibility to secure transportation to the workplace for employees with temporary work permits. However, these employees have no means of transportation to get to medical appointments, the pharmacy or the grocery store.

Public transportation in rural areas would help these workers and their families better integrate into their host communities. Without public transportation, students have no choice but to own a vehicle, carpool when possible, or live near post-secondary institutions, which are often located in major cities. For rural areas where about 20% of the Canadian population lives, a per capita contribution is not appropriate. Commuting distance should be a criterion for contribution. This approach would support the provision of transportation services in rural areas.

I would now like to quickly address a fairness issue that is not mentioned at all in this budget. It involves the current state of the Income Tax Act when it comes to the transfer of a family business. Currently, the reality for business owners is that it costs them more in taxes to sell their business to a family member than to sell it to a third party.

The current act unjustifiedly disadvantages operators who wish to pass on their family business to their daughter or son, leaving owners to decide whether to keep their life's work in the family or sell it to the highest bidder.

As everyone knows, Beauce is all about small business, and I would like to share an example from my riding. Eddy Berthiaume of Les Escaliers de Beauce in Saint-Elzéar was forced to make the difficult decision I just explained to the House. As the owner of half the business, Eddy is a hard worker who devoted years and years to building his business. When he was ready to retire, he decided to sell his shares in the family business to his children. Unfortunately, he was unfairly forced to pay thousands of dollars in transfer fees.

The worst part is that his business partner sold his half of the business to a third party and had to pay next to nothing in taxes. Why is that unfair? That is just one of many examples of how the government is leaving this country's small businesses out in the cold. We do not need a government that is willing to grant exemptions to some Canadians while penalizing hard-working families like the Berthiaumes.

I therefore hope all parties in the House will support the Conservative Party when it is time to vote on Bill C-208 tomorrow.

I now want to talk about high-speed Internet access and, in particular, the quality of cellular coverage in rural parts of Canada. This is the biggest problem that continues to put rural and remote communities at a disadvantage.

More and more Canadians are required to work and learn from home, so stable and reliable Internet and cellular connections are crucial. The Liberal government has completely bungled this issue, which has lagged for years, through five different programs and three departments.

Fortunately for Quebeckers, our provincial government presented a real plan with dates and objectives to get all homes connected by the end of 2022. The federal plan was so bad that the province implemented its own plan and simply asked the federal government to share the costs. Other parts of Canada are unfortunately quite far behind. We do not need more talk. We need action on this urgent issue.

Budget 2021 does not contain a single initiative to help improve cellular networks in rural areas. In some parts of my riding, people are finally getting access to a decent Internet connection. However, if they walk five minutes down the road, they lose any reliable connection to the cellular network, which makes no sense.

When can we finally hope to have a plan that works from this government to connect all Canadians in rural areas? We need the government to show leadership. It cannot continue to sit on the sidelines and wait for the big telecoms to take the initiative and solve this problem.

Another file that I am very passionate about is our agriculture and agri-food sector, a very important part of Canada's rural economy. This sector has been neglected by the Liberal government for years. To improve the economic development of Canada's rural areas, it is essential that the government help fund not just farmers on the ground, but the entire food chain.

When I was the associate shadow minister for agriculture and agri-food for the Conservative Party, I tried to get the minister to listen to me, but it seems that her hands are tied by a Prime Minister who does not believe in this sector. I still sit on the Standing Committee on Agriculture and Agri-Food, which released a complete report on business risk management programs. Unfortunately, nothing has changed.

It is essential to improve the business risk management programs for agricultural producers. The minister proposed a few changes to the program on condition that the provinces and territories share the cost. Unfortunately, some provinces cannot do that right now because of budget constraints. The minister is probably happy to wash her hands of it and say that she tried. However, agriculture and agri-food need to be considered as a real driver of Canada's economic recovery.

In closing, this budget is nothing more than a campaign tool for the Liberals, who are throwing money around without a real plan. I hope that, before the next election, Canadians will clearly see that the Liberals are just trying to buy votes with this budget.

Financial Statement of Minister of Finance

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

Madam Speaker, I thank the parliamentary secretary for her speech.

This is lavish spending at a time when we are accumulating hundreds of billions of dollars in deficit. Does my colleague not think that there are things missing from the budget, such as the health transfers, money for seniors as of age 65, and the agriculture sector?

My question for the parliamentary secretary has to do with that last point in particular, but it might take me a minute to get there.

A few hundred million dollars in compensation is on the table for processors. That is not a lot. As far as foreign workers are concerned, the biggest investment is in inspections. That is not what the sector needs. It needs support. The government should be increasing money for foreign workers, rather than decreasing it starting in June.

That brings me to farm succession planning. Since we are talking about the future, economic recovery and ensuring food security in this country, can my colleague explain why the government put absolutely nothing in the budget about transferring farms or transferring small businesses in general, even as it seems to be getting ready to vote against Bill C-208?

I would like her to say a few words about that.

Finance

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I have the honour to present, in both official languages, the third report of the Standing Committee on Finance in relation to Bill C-208, an act to amend the Income Tax Act, transfer of small business or family farm or fishing corporation. The committee has studied the bill and has decided to report the bill back to the House without amendment.

Department of Foreign Affairs, Trade and Development Act

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

Mr. Speaker, I am pleased to speak today on Bill C-216.

We are debating this legislation because the Liberal government has not treated supply-managed sectors fairly. They have not supported farmers or producers, and not followed through on their commitments. However, this legislation does not address the issues of farmers and producers.

Conservatives have been strong and vocal supporters of our supply-managed sectors and will continue to be. In fact, Conservatives have a policy declaration that says the following:

...it is in the best interest of Canada and Canadian agriculture that the industries under the protection of supply management remain viable. A Conservative Government will support supply management and its goal to deliver a high quality product to consumers for a fair price with a reasonable return to the producer.

Our leader, our party, and our policy have been clear on this. The Conservative Party is an ally, supporter and defender of supply management in Canada. I will talk about these important supply-managed sectors.

When I met with the Chicken Farmers of Canada, they were clear about their priorities. Through correspondence and an appearance at committee, we know that their priorities are new investment programs to support producers as they improve their operations, a market development fund to promote Canadian-raised chicken, a tariff rate quota allocation methodology designed to ensure minimal market distortions, the enforcement of Canadian production standards on imports and the resolution of import control loopholes undermining this sector. One of these is the fraudulent importation of mislabelled broiler meat being declared as spent fowl. There are reports of chicken meat imports being mislabelled in order to bypass import control measures.

When this situation first became apparent in 2012, Canada was importing the equivalent of 101% of the United States’ entire spent fowl production. According to the Chicken Farmers of Canada, these illegal imports have resulted in an estimated annual loss of 1,400 jobs in Canada, $105 million in contributions to the national economy, $35 million in tax revenue and the loss of at least $66 million in government revenues due to tariff evasion.

These illegal imports also raise important food safety concerns relating to traceability for recalls. This issue not only affects our economy and hard-working chicken farmers, but the lives of Canadians are on the line in the case of a food-borne illness.

Where is the action plan to deal with this?

When I spoke to the Egg Farmers of Canada, an industry association that represents over 1,000 family farms across the country that support over 18,000 jobs and $1.3 billion in GDP, they were clear that they wanted the government to stop claiming to support the industry and actually start defending it. I learned of the innovation occurring in this industry.

The egg industry is tired of being strung along by the government. They had to fight tooth and nail for clarity on promised compensation. They expressed their desire for investment in their industry, which is the backbone of rural communities, and for market development support when it comes to the Canadian egg brand.

Where is the desire or action plan to defend our egg industry?

When I spoke to the Dairy Farmers of Canada, they told me how hard it was for the industry to plan for the future due to the government’s lack of transparency, not the least in regard to the disbursement of promised compensation.

Where is the desire and action plan to defend the dairy industry?

These same concerns were raised by the Turkey Farmers of Canada. When I first spoke with them, they were going into year four without any payments of promised compensation by the government.

The Conservatives are the only party who can and will be able to ensure that our world-class producers of dairy, chicken, turkey, and eggs have a partner in government. The Bloc Québécois will never have to negotiate a trade agreement for Canada and be the partner in government that the supply management businesses in Quebec and across the country can rely on. The Conservative Party is the only party that can and will put an end to the failures of the Liberal government when it comes to trade agreements and compensation.

Conservatives will faithfully defend supply management. We were in the House of Commons pressing the government over and over again to fulfill its compensation promises to the supply-managed sectors. We have also raised in the House the meaningful actions that we can take now to protect and support farmers and producers, including in supply-managed sectors. These actions would include modernizing and improving agricultural risk management programs, asking the Competition Bureau to investigate the impacts of abusive trade practices in the grocery industry by the grocery giants, or providing flexibility and clarity on how compensation for supply-managed sectors is allocated.

Why have we seen no plans on these important topics?

I have spent a lot of time talking with businesses and industry representatives. They want consultation, understanding and transparency from the government. They want support from the government, which has been sorely lacking. After all, our agricultural sectors do not compete fairly with other countries that subsidize, both directly and indirectly, their own products.

Creating legislation such as we are debating today, which could target farmers and producers right from the onset as bargaining chips in future trade negotiations, is not a wise strategy. Canada could be out-negotiated and forced to agree to concessions and pay compensation. This would mean more workers losing jobs, and it would do nothing to drive investment, spearhead innovation or protect jobs.

In my home province of British Columbia, supply management is an important part of our economy. B.C. has over three million egg-laying hens across over 140 farms in the province. Chicken farmers in B.C. produce 87 million dozen eggs annually and account for 14,000 jobs, contributing $1.1 billion to Canada's GDP.

B.C. is also the third-largest dairy-producing province in Canada, with 500 farms.

It is the Conservatives who are putting forth private members' bills that are meaningful to the agriculture sector. Conservative private member's bill, Bill C-206, would exempt farmers from paying the carbon tax on gasoline, propane and natural gas. From heating barns to running farm equipment, farmers face steep energy costs, and these have skyrocketed in many parts of the country due to the increasing federal carbon tax. It is a practical measure to help alleviate the financial strain on the agriculture sector. Supporting our food security is more important than ever.

Conservative private member's bill, Bill C-208, would allow the transfer of a small business, family farm or fishing operation at the same tax rate when selling to a family member as when selling to a third party. I was happy to jointly second this bill in the first session of this Parliament. This was a poor tax policy change brought in by the government. This policy bothered me so much when it first came out. It was one of the factors that prompted me to run to become a member of Parliament.

Succession planning is a challenge at the best of times for small businesses, in particular farmers, and it is unfair that it is more financially advantageous to sell to a stranger than to one's own children, who have often grown up around the family business and contributed over time. I have many communications regarding this bill from my constituents in Kelowna—Lake Country on how positively it will affect their businesses and future planning.

Conservative Bill C-205 would amend the animal health act to address trespassing onto farms, into barns or other enclosed areas where the health of animals and safety of Canada’s food supply is potentially at risk. Entering a farm without lawful authority or excuse would become an offence under the act.

We will always support the hard-working farmers and producers in our supply managed sectors who ensure quality foods for Canadians. Dairy products, chicken, turkey and eggs are core staples on our dinner tables, and the pandemic showed us how important it is to protect our supply chains, supply management and food security.

The legislation we are debating today does nothing to address any of the concerns I have outlined. There are more meaningful, productive and long-lasting ways we can stand up for supply management without supporting Bill C-216.

Canada’s Conservatives will continue to support our supply managed sectors and ensure that dairy- and poultry-farming families and producers are consulted and engaged in any trade negotiations in the future.

We will continue to support all farmers and producers in meaningful ways.

Opposition Motion—Measures to Support Canadian Workers

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Madam Speaker, the pandemic has changed people's habits and left many workers and their families in uncertainty. In order to maintain many jobs and promote recovery for various sectors, such as tourism, the federal government should make workers the focus of the recovery.

The next federal budget should provide for better, more flexible support programs that will help maintain good-quality jobs. The federal government should implement sector-specific measures to support workers in highly impacted sectors, such as charities and businesses in the tourism, hospitality, accommodation, arts, entertainment and major events sectors, which experienced major financial losses as a result of the lockdown and public health measures.

For example, the lockdown took a major toll on the tourism industry. International tourists stayed at home, and domestic tourists chose to be cautious. Revenues for seasonal businesses and organizations in the tourism industry are at an all-time low.

With regard to the hotel industry, the lack of international tourists means that hotels throughout Quebec, including those in Quebec City and Montreal, are sitting practically vacant. This was a very challenging season for thousands of inns in welcoming villages across Quebec, such as those along the St. Lawrence River.

The socio-economic impacts on workers in Quebec's major economic sectors have been numerous, including job losses for many young people and students, jobs at small- and large-scale events, bars, restaurants and summer camps. Losing a job is tough. People and families sometimes have to relocate or change careers entirely. This causes stress, especially financial stress. It can even lead to depression. Companies can also lose expertise as a result, putting stress on managers and owners. The topic of bankruptcy is also unavoidable. The health crisis has not affected everyone equally. Some sectors have literally been wiped out, while others will take many months to recover. COVID-19 must not result in a bankruptcy pandemic. Individuals and small and medium-sized businesses that owe the government money because of the assistance they have received must be given time. They must be offered an interest-free deferral. It is also important to support all the local businesses being crushed by multinational e-commerce companies. Improved support programs are therefore needed.

For the past year, the government has been generous. However, its one-size-fits-all programs are costly and ill suited for those hit the hardest. Today, the programs are still plagued by problems with their design, accessibility and processing times.

Job losses and insecurity impact people and their families, our workers and business owners. To minimize job losses and eliminate inadequate programs as much as possible, we need support measures that are effective, targeted and flexible. They are essential for providing support to workers. We must act quickly, because many polls have shown a deterioration in quality of life since March 2020, which is cause for concern.

The future of our small businesses, which are increasingly burdened by debt and must face stiff competition from major chains and multinationals, is also cause for concern. We must support our businesses and organizations better, particularly by reviewing the terms of the assistance measures. For the sectors that have been hit hardest by the crisis and that will be among the last to reopen, the Bloc Québécois is demanding improved support programs, including lending supports for small and medium-sized businesses. The lending supports must be accessible within 30 days of the passage of the motion, to prevent a wave of bankruptcies and layoffs on the horizon.

We also have to consider subsidies and tax credits, without putting businesses further in debt. As they say, an elastic will only stretch so far. If we want to help companies hang onto their jobs and expertise, then subsidies and tax credits are essential. We need skilled employees for the recovery, and we will need intelligence, innovation and experience. Companies should not have to recruit new people, new talent. I am thinking of the tourism and cultural industries, which are currently losing talent, from managers to guides, because they are temporarily closed. The Canada emergency wage subsidy and the Canada emergency rent subsidy, especially for the sectors that will take some time to recover, are necessary to enable tourism and cultural businesses to recover. These programs must be extended until at least the next tourist season to give the industry time to recover. That is an example of the kind of flexibility I am talking about.

This ecosystem has been gutted over the past year, and we will have to invest in human resources to help it rebuild. Tourism companies, festivals and other large-scale events will have to reinvent themselves and rethink the services they provide in the regions of Quebec.

To help Quebec's tourism and cultural businesses get back on their feet, the federal government should gradually move away from its one-size-fits-all programs and focus on programs that are better targeted and more flexible. These types of programs are more effective and promote innovation. For example, for this year only, the federal government should allow for a special $200 tax credit, 80% of which would be refundable, to support cultural and community organizations with their recovery and help them get back on track as soon as possible. Another example would be implementing a generous tax credit to encourage experienced workers to keep working if they want to, instead of retiring.

Speaking of tourism, to go a bit further, what about the allure of the regions? Why not use tourism as a way to spur personal and regional development by and for young people who are looking to settle in the regions for the healthy lifestyle and great quality of life?

We need to ensure that young people, and those who are not so young, feel proud to live in the regions and contribute to the development of not only the land and its natural beauty, but also its expertise and innovative cultural and tourism projects. Let us allow the next generation to show us the regions of Quebec and Canada at their best.

In order for the next generation to be able to settle in the regions, we need to promote the development of certain sectors. I am thinking in particular of the next generation of farmers. Right now, farmers are better off selling their farms to strangers than passing them on to a family member. The Government of Quebec has once again led the way by changing its own tax rules to encourage the transfer of family farms. Let us put an immediate stop to this injustice. The federal government needs to amend the tax rules so that the intergenerational transfer of farms is at least as profitable as selling to strangers. Obviously, I am thinking about Bill C-208, which is currently being examined by the Standing Committee on Finance.

When it comes to agri-food, Quebec has known for a long time, since Confederation, that the federal government is hindering the development of Quebec's agricultural model, particularly today, when it is favouring other export sectors at the expense of Quebec agriculture.

In the agri-food sector, we have seen how fragile the globalized supply chains are. To ensure food security for our people, we must support our farmers and enable them to produce in a fair market that supports healthy products from local businesses that can again be handed down from one generation to the next.

Then there are processors and temporary foreign workers. The federal government must help farmers, processors and businesses continue to bring in temporary foreign workers. We must improve the temporary foreign worker programs to make them more flexible and more tailored to business conditions, without overlooking regional businesses. It takes over eight hours to drive to Abitibi—Témiscamingue, which makes things complicated for a farmer who wants to personally pick up the foreign worker from the airport.

I will conclude with a few words about support for land use and local development. Obviously, the major issue is access to high-speed Internet and the cell network. To support regional economic development, we want the federal government to transfer the necessary funds to Quebec immediately so all Quebeckers can connect to high-speed Internet. The delays are never-ending, and Canada has proven itself incapable of breaking down the biggest barriers to the competition that Quebec telecom companies large and small face to ensure accessible, affordable telecom service in Quebec. There are nine federal programs, each with its own idiosyncrasies. Doing business with the federal government is very complicated.

Quebec also needs the means to create a system that will help restore services to the regions. I am talking about airline service. However, Ottawa must not get in the way of financial support and regional connections Quebec has set up. I will come back to that. Air Canada cannot be subsidized forever. There are companies such as Propair in Abitibi—Témiscamingue that want to serve the regions.

In conclusion, the Bloc Québécois is in favour of the motion. The federal government has now gone nearly two years without presenting a proper budget. The last budget was presented in the spring of 2019, before the election and, of course, before the pandemic. We need action, and we need it now. A great many businesses, their workers and their families are watching. This has been a long wait. Support is needed quickly, so we must act quickly by adopting this motion.

Agriculture Day

[Alex Ruff, Conservative, Bruce—Grey—Owen Sound, ON]

Mr. Speaker, today is Canada's Agriculture Day, when we show our appreciation to our resilient and hard-working farmers and farm families. I have heard first-hand from farmers in my riding how they have overcome immense adversity since the start of the pandemic, with processing delays and border restrictions affecting the movement of workers and products.

The government has the opportunity now to take action and reduce the burdens on our farmers by implementing rapid testing at the border to reduce the isolation period for temporary foreign workers, thus allowing workers to start on time; by adopting Bill C-206, which would cut costs for farm families by exempting propane and natural gas from the carbon tax for farmers; and by adopting Bill C-208, in order to maintain the strong tradition of family farms in Ontario and Canada. Finally, the government must stand up for Enbridge's Line 5, as it is a crucial lifeline for our farmers, other industries and the environment. Replacing this pipeline would require 2,000 trucks or 800 railcars daily to meet the current need.

On Canada's Agriculture Day, I urge the government to implement these tangible measures to support our farmers. For all they do for us, it is the least we can do for them.