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.

Canada Labour Code

[Eric Duncan, Conservative, Stormont—Dundas—South Glengarry, ON]

Mr. Speaker, it is a pleasure to rise here today in support of the positive words and well-deserved comments made so far on Bill C-220. I congratulate my colleague from Edmonton Riverbend for his work on this and for garnering support. Hopefully, if we go by the optimism and tone tonight, we can get it to committee to get more feedback and work together on how we can support caregivers and people in their time of need.

I am proud to be one of the members to have seconded this bill. It was good to get bipartisan support for the idea it puts forth in the first hour of debate we had on this bill last fall.

We have had a pretty good week when it comes to votes on private members' bills. There was Bill C-208, a Conservative bill, on the transfer of family farms. It got good bipartisan support. It is a very good, common sense piece of legislation that is moving forward. There was also Bill C-204, which takes real action on environmental protections by banning the export of plastic waste. When we get back from the break week, if we have a vote on this, I hope we will have another Conservative private member's bill that is making good progress and helping people.

For those who are not as familiar with it, the bill before us deals with compassionate care leave. We have that in our country for up to 28 weeks through the EI system to help those who need to provide care to loved ones in their final days. One of the challenges we have is, as an NDP member said in the first hour of debate in noting that there is a bit of a rough edge when it comes to the end of compassionate care leave, that when caregivers lose their loved ones, they are expected to go back to work quickly. We need to address that. This bill certainly makes progress in doing that.

I want to give context and clarification to my constituents in Stormont—Dundas—South Glengarry who are watching this and Canadians who are interested in supporting this bill.

Due to a technicality in the private members' bills process, my colleague from Edmonton Riverbend cannot propose the spending of dollars without a royal recommendation and technical process. We cannot force the government to spend dollars through the regular EI program; that would have to be proposed by the government. I think getting this bill further, making that progress and passing this bill would build momentum to encourage the government to act on this.

What we are able to do as a Parliament through the private members' bills process is amend the Canada Labour Code covering federally regulated workplaces, such as air transportation, banks, radio and television communications, railways, Crown corporations like Canada Post, and telecommunications. I think of our family trucking business, which would fall under this because of our cross-country work. Many trucking businesses would fall under this. Therefore, through this private member's bill we are able to address it in the Canada Labour Code.

The bill addresses a gap in compassionate care leave with respect to bereavement. The statistics show that about one in every four workers is a caregiver to someone in need. Currently, we have the EI process that has seen a lot of positive modernizations by governments. I am proud of our Conservative record when we were in government of expanding EI for maternity leave, looking at compassionate care leave, and making enhancements over the years. This is something that can build on that next layer, that next level of support that we need to do.

Here is why we need to do this. There are about three key points in this.

First, if the loved ones of family caregivers pass away, the family have to go back to work within a matter of a couple of days. We are lacking in that respect in our compassionate care policy in this country.

Second, there are a lot of things that family members need to attend to from a technical perspective, such as a funeral, insurance benefits and estate situations. In my constituency office we work with a lot of families on the CPP death benefit or other paperwork and things that need to be returned or closed on a file.

The third point is very relevant, but we have not talked about it as much during this whole debate, and that is the mental health of those caregivers as part of the bereavement process. It certainly has been tough during COVID-19, but that has always been the case when people have to return back to work quite quickly. I was proud to see many colleagues from all parties celebrate the amazing progress we have made with the Bell Let's Talk Day in raising awareness and reducing the stigma of mental health challenges.

This bill is a perfect example that we can go back to our constituents with and say that we are actually making things better, that we are doing things here in Ottawa that can help people in their time of need.

My colleague's bill, which I am proud to support, does that. It looks at where we are able to make these changes so that we can give up to three weeks of additional compassionate care leave in federally regulated workplaces to an employee to deal with grieving and bereavement after their loved one's life has ended.

What I like about this is our effort on this side of the aisle to show pragmatism and talk about a sliding scale, where someone could get up to three weeks of compassionate leave, depending on how much leave they had taken before their loved one's passing. I think it is pragmatic and reasonable, and it is exactly what we need to do to make a step in the right direction. If we can get this is in place we could also encourage the government and Canadians to support enhancements to EI in how we do this.

I want to note the overwhelming support from stakeholders who deal with caregivers, bereavement and illness across this country. There is a great cross-section of people on board in support of this bill: the Canadian Grief Alliance, the Canadian Cancer Society, the MS Society of Canada, the Heart and Stroke Foundation—

Opposition Motion—Special Committee on Canada-United States Economic Relationship

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

Madam Speaker, it is an honour to be able to speak to the opposition day motion put forward today. I want to thank my colleague, the member for Calgary Centre, for his excellent presentation and for sharing his time with me today.

When we look at the nations Canada trades with, we see there is nothing more important than our relationship with the United States. As with all relationships, though, we cannot take this one for granted. As a farm leader, an MLA and now a member of Parliament, I have had a front row seat to some of the ups and downs of the politics of that trade relationship.

Throughout the years, I have attended many Midwestern legislative conferences in the U.S., as well as some in Manitoba when I was there, which provide an opportunity for elected Canadian representatives across the Prairies to meet with their American counterparts from the Great Plains and Midwest industrial states.

At those conferences, there was an opportunity to meet countless people, and I quickly learned that they are facing many of the same challenges we are. I mentioned the Midwestern legislative forums. I attended them in Michigan; Kansas; Des Moines, Iowa; and one in the Pacific Northwest, out in Whitefish, Montana, as well.

At these conferences, we learned a lot about the interchange of the relationship that we have with our American counterparts. As I said earlier, many of the issues are very common, particularly on the trade side. When the U.S. put its first farm bill in place in 1986, I was in Kansas.

Whether it is logistical or regulatory barriers, or just plain old politics, we get a better understanding of what is at the root of some of the trade disputes that still linger to this day. We do not have to look far for those examples, such as with softwood lumber or the country-of-origin labelling that we had for beef.

Trade disruptions over the years have negatively impacted numerous Canadian exports. More recently, NAFTA was renegotiated, and we witnessed the former U.S. administration impose a 25% tariff on imports of Canadian steel, and a 10% tariff on imports of Canadian aluminum.

Regardless of who occupies the White House or controls Congress, we must always be cognizant that with the stroke of a pen many of our industries and people's jobs could be severely impacted. I applaud our Leader of the Opposition for taking the proactive step of putting forward this motion to create this new special committee.

When I was first elected to the House of Commons in 2013, the now Leader of the Opposition was the parliamentary secretary to the Minister of International Trade. At that time, the Canada-Europe trade agreement was still being negotiated. The member for Durham visited my constituency to meet with agricultural and business leaders about this new opportunity, and what an opportunity it was.

Trade is at the heart of our region's economy. Western Manitoba's exports are based primarily on agriculture, livestock and natural resources, alongside manufacturers, such as Behlen Industries, which are major employers in our region. To put a number on it, the latest data from the Government of Manitoba on agricultural exports stated that the American domestic market is worth over $2.6 billion per year for the province of Manitoba.

Let us never forget, there are almost as many people living in the National Capital Region as in the entire province of Manitoba. By far, Americans are Manitoba's largest foreign customer, with the second-largest being Japan. Trade with Japan amounts to roughly $896 million a year.

Manitoba's canola exports alone to the United States are worth over half a billion dollars, followed by processed potatoes, oilseed cakes, hogs and cattle. The economic prosperity of almost every community in my region is directly tied to the success of exporting many of these agricultural products.

Due to the importance of this trade relationship, coupled with the new U.S. administration, it is imperative we have an ability to work on this issue, in conjunction with whatever our committees decide to study.

As with many issues, there is a lot of crossover between the various parliamentary committees and stakeholders. The agriculture, industry, natural resources and transport sectors want to be heard and will want to know the government's strategy moving forward.

Just this week in Congress, Tom Vilsack, who was nominated by President Biden to be his agricultural secretary, received a unanimous vote from the Senate agriculture committee and is expected to be confirmed by the overall Senate in the days ahead. Secretary Vilsack even joked that it felt like Groundhog Day during his Senate confirmation hearing, as he was President Obama's agriculture secretary during his entire eight years in office.

The United States and Canada enjoy the world's largest bilateral agricultural trade relationship, with almost 120 million dollars' worth of food and farm products crossing the border every day. In the last couple of years, the United States Department of Agriculture has created an undersecretary of trade position within the Department of Agriculture itself to work solely on trade policies directly related to agriculture. I say this just to emphasize the importance of that trade arrangement.

As is to be expected, the U.S. is on the offence. It is looking to expand its market opportunities not only here in Canada but also around the world. Americans might be our friends and allies, but I have always stated they are also our competition.

In the spirit of collaboration, I truly hope we can pass this motion and immediately get this new committee up and running, because I think the Liberal government could benefit from the insights and experience of many of our Conservative caucus members. While I am not lamenting this, there is not a Liberal MP from Winnipeg to the greater Vancouver area, and between those two points there are thousands of farmers and agri-food industries. As a member who represents a lot of farmers, I have grave concerns about the government's track record on agriculture.

As an example, we saw how long it took the government to respond to the Chinese government blocking Canadian canola shipments. In fact, we had to call emergency committee meetings to even discuss the issue. I remember the procedural manoeuvres the government took to ensure we could not even request an emergency debate in the House. My point is not to rehash these issues, but to learn from them. We must be proactive on potential trade disruptions. I believe this new special committee will provide an appropriate avenue to do so.

We know there are going to be issues in the coming months relating to pipelines, as has been mentioned by many of my colleagues today, and the buy America procurement rules. Our Canadian economy cannot afford any more trade disruptions. We need to get all our sectors back up and running, and we cannot afford to be caught asleep at the wheel. Our constituents are counting on us to get this right.

As a believer in free trade and free markets, I want to create the right conditions for entrepreneurs, business people and farmers to flourish. It is part of the reason I brought forward Bill C-208 yesterday in the House. I thank my colleagues for their support on that. Canada must be a place where no ambition is too big and no federal government will stand in the way of people working hard to get ahead.

A dynamic economy where businesses are forming and hiring is what is needed. A free market economy is a social institution that harnesses human creativity and ingenuity for the benefit of everyone. There is not enough money in all the government coffers in Ottawa to replicate what entrepreneurs and risk-takers do every single day. Let us work together to make sure our farmers, businesses and manufacturers have a stable and predictable American market they can sell into.

Income Tax Act

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

moved for leave to introduce Bill C-208, An Act to amend the Income Tax Act (transfer of small business or family farm or fishing corporation).

Mr. Speaker, I am pleased to rise today to introduce my private member's bill, an act to amend the Income Tax Act regarding the transfer of small businesses or family farms or fishing corporations. This legislation would level the playing field for small businesses, family farms or fishing corporation owners when transferring their operation to a family member.

Currently, when a person sells his or her business to a family member, the difference between the sale price and the original purchase price is deemed to be a dividend. However, if this business is sold to a non-family member, it is considered a capital gain, which is taxed at a lower rate and allows the seller to use his or her lifetime capital gains exemption.

The bill would allow small businesses, family farms and fishing corporations the same tax rate when selling their operations to their family member as they would selling it to a third party.

I encourage all members to support this bill to promote sustainable small business succession, enhance opportunities for entrepreneurship and end the inequitable taxation of those transferring a small business, farm or fishing corporation to a family member.

(Motions deemed adopted, bill read the first time and printed)