Bill C-30 (Historical)

Budget Implementation Act, 2021, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on April 19, 2021 and other measures

Part 1 implements certain income tax measures by
(a) providing relieving measures in connection with COVID-19 in respect of the use by an employee of an employer-provided automobile for the 2020 and 2021 taxation years;
(b) limiting the benefit of the employee stock option deduction for employees of certain employers;
(c) providing an adjustment for payments or repayments of government assistance in determining capital cost allowance for certain zero-emission vehicles;
(d) expanding the scope of the foreign affiliate dumping rules to further their objectives;
(e) providing change in use rules for multi-unit residential properties;
(f) establishing rules for advanced life deferred annuities;
(g) providing for an option to deduct repaid emergency benefit amounts in the year of benefit receipt and clarifying the tax treatment of non-resident beneficiaries;
(h) removing the time limitation for a registered disability savings plan to remain registered after the cessation of a beneficiary’s eligibility for the disability tax credit and modifying grant and bond repayment obligations;
(i) increasing the basic personal amount for certain taxpayers;
(j) providing a temporary special reading of certain rules relating to the child care expense deduction and the disability supports deduction for the 2020 and 2021 taxation years;
(k) providing flow-through share issuers with temporary additional time to incur eligible expenses to be renounced to investors under their flow-through share agreements;
(l) applying the short taxation year rule to the accelerated investment incentive for resource expenditures;
(m) introducing the Canada Recovery Hiring Program refundable tax credit to support the post-pandemic recovery;
(n) amending the employee life and health trust rules to allow for the conversion of health and welfare trusts to employee life and health trusts;
(o) expanding access to the Canada Workers Benefit by revising the applicable eligibility thresholds for the 2021 and subsequent taxation years;
(p) amending the income tax measures providing support for Canadian journalism;
(q) clarifying the definition of shared-custody parent for the purposes of the Canada Child Benefit;
(r) revising the eligibility criteria, as well as the level of subsidization, under the Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS), extending the CEWS and the CERS until September 25, 2021, providing authority to enable the extension of these subsidies until November 30, 2021, and ensuring that the level of CEWS benefits for furloughed employees continues to align with the benefits provided through the Employment Insurance Act until August 28, 2021;
(s) preventing the use by mutual fund trusts of a method of allocating capital gains or income to their redeeming unitholders where the use of that method inappropriately defers tax or converts ordinary income into capital gains;
(t) extending the income tax deferral available for certain patronage dividends paid in shares by an agricultural cooperative corporation to payments made before 2026;
(u) limiting transfers of pensionable service into individual pension plans;
(v) establishing rules for variable payment life annuities;
(w) preventing listed terrorist entities under the Criminal Code from qualifying as registered charities and providing for the suspension or revocation of a charity’s registration where it makes false statements for the purpose of maintaining registration;
(x) ensuring the appropriate interaction of transfer pricing rules and other rules in the Income Tax Act;
(y) preventing non-resident taxpayers from avoiding Canadian dividend withholding tax on compensation payments made under cross-border securities lending arrangements with respect to Canadian shares;
(z) allowing for the electronic delivery of requirements for information to banks and credit unions;
(aa) improving existing rules meant to prevent taxpayers from using derivative transactions to convert ordinary income into capital gains;
(bb) extending to a wider array of eligible automotive equipment and vehicles the 100% capital cost allowance write-off for business investments in certain zero-emission vehicles;
(cc) ensuring that the accelerated investment incentive for depreciable property applies properly in particular circumstances; and
(dd) providing rules for contributions to a specified multi-employer plan for older members.
It also makes related and consequential amendments to the Excise Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Greenhouse Gas Pollution Pricing Act, the Income Tax Regulations and the Canada Disability Savings Regulations.
Part 2 implements certain Goods and Services Tax/Harmonized Sales Tax (GST/HST) measures by
(a) temporarily relieving supplies of certain face masks and face shields from the GST/HST;
(b) ensuring that non-resident vendors supplying digital products or services (including traditional services) to consumers in Canada be required to register for the GST/HST and to collect and remit the tax on their taxable supplies to consumers in Canada;
(c) requiring distribution platform operators and non-resident vendors to register under the normal GST/HST rules and to collect and remit the GST/HST in respect of certain supplies of goods shipped from a fulfillment warehouse or another place in Canada;
(d) applying the GST/HST on all supplies of short-term accommodation in Canada facilitated through a digital platform;
(e) expanding the eligibility for the GST rebate for new housing;
(f) expanding the definition of freight transportation service for the purposes of the GST/HST;
(g) extending the application of the drop-shipment rules for the purposes of the GST/HST;
(h) treating virtual currency as a financial instrument for the purposes of the GST/HST; and
(i) clarifying the GST/HST holding corporation rules and expanding those rules to holding partnerships and trusts.
It also makes related and consequential amendments to the New Harmonized Value-added Tax System Regulations, No. 2.
Part 3 implements certain excise measures by increasing excise duty rates on tobacco products by $4.‍00 per carton of 200 cigarettes along with corresponding increases to the excise duty rates on other tobacco products.
Part 4 enacts an Act and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends the Canada Deposit Insurance Corporation Act to, among other things,
(a) specify the steps that an assessor must follow when they review a determination of the Canada Deposit Insurance Corporation with respect to the payment of compensation to certain persons;
(b) clarify that the determination of whether or not persons are entitled to compensation is to be made in accordance with the regulations;
(c) prevent a person from taking certain actions in relation to certain agreements between the person and a federal member institution by reason only of a monetary default by that institution in the performance of obligations under those agreements if the default occurs in the period between the making of an order directing the conversion of that institution’s shares or liabilities and the occurrence of the conversion;
(d) require certain federal member institutions to ensure that certain provisions of that Act — or provisions that have substantially the same effect as those provisions — apply to certain eligible financial contracts, including those contracts that are subject to the laws of a foreign state;
(e) exempt eligible financial contracts between a federal member institution and certain entities, including Her Majesty in right of Canada, from a provision of that Act that prevents certain actions from being taken in relation to those contracts; and
(f) extend periods applicable to certain restructuring transactions for financial institutions.
It also amends the Payment Clearing and Settlement Act to
(a) specify the steps that an assessor must follow when they review a determination of the Bank of Canada with respect to the payment of compensation to certain persons or entities; and
(b) clarify that systems or arrangements for the exchange of payment messages for the purpose of clearing or settlement of payment obligations may be overseen by the Bank of Canada as clearing and settlement systems.
Finally, it amends not-in-force provisions of the Canada Deposit Insurance Corporation Act, enacted by the Budget Implementation Act, 2018, No. 1, so that, under certain circumstances, an error or omission that results in a failure to meet a requirement of the schedule to the Canada Deposit Insurance Corporation Act will not prevent a deposit from being considered a separate deposit.
Division 2 of Part 4 amends the Bank of Canada Act to authorize the Bank of Canada to publish certain information about unclaimed amounts.
It also amends the Pension Benefits Standards Act, 1985 with respect to the transfer of pension plan assets relating to the pension benefit credit of any person who cannot be located to, among other things,
(a) limit the circumstances in which such assets may be transferred and specify conditions for the transfer; and
(b) specify the effects of a transfer on any claims that may be made in respect of those assets.
Finally, it amends the Trust and Loan Companies Act and the Bank Act to
(a) include amounts that are not in Canadian currency in the unclaimed amounts regime; and
(b) impose additional requirements on financial institutions in connection with their transfers of unclaimed amounts to the Bank of Canada and communications with the owners of those amounts.
Division 3 of Part 4 amends the Budget Implementation Act, 2018, No. 2 to exclude certain businesses from the application of a provision of the Bank Act that it enacts, which allows certain agreements that have been entered into with banks to be cancelled.
Division 4 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to extend the period during which federal financial institutions governed by those Acts may carry on business to June 30, 2025.
Division 5 of Part 4 amends the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) to
(a) provide that the entities referred to in that Act are no longer required to disclose to the principal agency or body that supervises or regulates them the fact that they do not have in their possession or control any property of a foreign national who is the subject of an order or regulation made under that Act; and
(b) change the frequency with which those entities are required to disclose to the principal agency or body that supervises or regulates them the fact that they have such property in their possession or control from once a month to once every three months.
Division 6 of Part 4 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to
(a) extend the application of Part 1 of that Act to include persons and entities engaged in the business of transporting currency or certain other financial instruments;
(b) provide that the Financial Transactions and Reports Analysis Centre make assessments to be paid by persons or entities to which Part 1 applies, based on the amount of certain expenses incurred by the Centre, and to authorize the Governor in Council to make regulations respecting those assessments;
(c) amend the definitions of designated information to include certain information associated with virtual currency transactions and widely held or publicly traded trusts that the Centre can disclose to law enforcement or other governmental bodies;
(d) change the maximum penalties for summary conviction offences;
(e) expand the list of persons or entities that are not eligible for registration with the Centre; and
(f) make other technical amendments.
Division 7 of Part 4 enacts the Retail Payment Activities Act, which establishes an oversight framework for retail payment activities. Among other things, that Act requires certain payment service providers to identify and mitigate operational risks, safeguard end-user funds and register with the Bank of Canada. That Act also provides the Minister of Finance with powers to address risks related to national security that could be posed by payment service providers. This Division also makes related amendments to the Canada Deposit Insurance Corporation Act, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, the Financial Consumer Agency of Canada Act and the Payment Card Networks Act.
Division 8 of Part 4 amends the Pension Benefits Standards Act, 1985 to establish new requirements and grant new regulation-making powers to the Governor in Council with respect to negotiated contribution plans.
Division 9 of Part 4 amends the First Nations Fiscal Management Act to allow First Nations that are borrowing members of the First Nations Finance Authority to assign their rights to certain revenues payable by Her Majesty in right of Canada, for the purpose of securing financing for that Authority’s borrowing members.
Division 10 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act to, among other things, increase the maximum amount of a fiscal stabilization payment that may be made to a province and to make technical changes to the calculation of fiscal stabilization payments.
Division 11 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act to authorize additional payments to the provinces and territories.
Division 12 of Part 4 authorizes payments to be made out of the Consolidated Revenue Fund in relation to Canada’s COVID-19 immunization plan.
Division 13 of Part 4 authorizes payments to be made out of the Consolidated Revenue Fund in relation to infrastructure and amends the heading of Part 9 of the Keeping Canada’s Economy and Jobs Growing Act.
Division 14 of Part 4 authorizes amounts to be paid out of the Consolidated Revenue Fund, to a maximum total amount of $3,056,491,000, for annual payments to Newfoundland and Labrador in accordance with the terms and conditions of the Hibernia Dividend Backed Annuity Agreement.
Division 15 of Part 4 amends the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act to authorize the Minister of Finance to make an additional fiscal equalization offset payment to Nova Scotia for the 2020–2021 fiscal year and to extend that Minister’s authority to make additional fiscal equalization offset payments to Nova Scotia until March 31, 2023.
Division 16 of Part 4 amends the Telecommunications Act to provide that decisions made by the Canadian Radio-television and Telecommunications Commission on whether or not to allocate funding to expand access to telecommunications services in underserved areas are not subject to review under section 12 or 62 of that Act but are subject to review by the Commission on its own initiative. It also amends that Act to provide for the exchange of information within the federal government and with provincial governments for the purpose of coordinating financial support for access to telecommunications services in underserved areas.
Division 17 of Part 4 amends the Canada Small Business Financing Act to, among other things,
(a) specify that lines of credit are loans;
(b) set a limit on the liability of the Minister of Small Business and Tourism in respect of each lender for lines of credit;
(c) remove the restriction excluding not-for-profit businesses, charitable businesses and businesses having as their principal object the furtherance of a religious purpose as eligible borrowers;
(d) increase the maximum amount of all loans that may be made in relation to a borrower under that Act; and
(e) provide that lesser maximum loan amounts may be prescribed by regulation for loans other than lines of credit, lines of credit and prescribed classes of loans.
Division 18 of Part 4 amends the Customs Act to change certain rules respecting the correction of declarations made under section 32.‍2 of that Act, the payment of interest due to Her Majesty and securities required under that Act, and to define the expression “sold for export to Canada” for the purposes of Part III of that Act.
Division 19 of Part 4 amends the Canada–United States–Mexico Agreement Implementation Act to require the concurrence of the Minister of Finance when the Minister designated for the purposes of section 16 of that Act appoints panellists and committee members and proposes the names of individuals for rosters under Chapter 10 of the Canada–United States–Mexico Agreement.
Division 20 of Part 4 amends Part 5 of the Department of Employment and Social Development Act to make certain reforms to the Social Security Tribunal, including
(a) changing the criteria for granting leave to appeal and introducing a de novo model for appeals of decisions of the Income Security Section at the Appeal Division;
(b) giving the Governor in Council the authority to prescribe the circumstances in which hearings may be held in private; and
(c) giving the Chairperson of the Social Security Tribunal the authority to make rules of procedure governing appeals.
Division 21 of Part 4 amends the definition of “previous contractor” in Part I of the Canada Labour Code in order to extend equal remuneration protection to employees who are covered by a collective agreement and who work for an employer that
(a) provides services at an airport to another employer in the air transportation industry; or
(b) provides services to another employer in another industry and at other locations that may be prescribed by regulation.
Division 22 of Part 4 amends Part III of the Canada Labour Code to establish a federal minimum wage of $15 per hour and to provide that if the minimum wage of a province or territory is higher than the federal minimum wage, the employer is to pay a minimum wage that is not less than that higher minimum wage. It also provides that, except in certain circumstances, the federal minimum wage per hour is to be adjusted upwards annually on the basis of the Consumer Price Index for Canada.
Division 23 of Part 4 amends the provisions of the Canada Labour Code respecting leave related to the death or disappearance of a child in cases in which it is probable that the child died or disappeared as a result of a crime, in order to, among other things,
(a) increase the maximum length of leave for a parent of a child who has disappeared from 52 weeks to 104 weeks;
(b) extend eligibility to parents of children who are 18 years of age or older but under 25 years of age; and
(c) limit the exception that applies in the case of a parent of a child who has died as a result of a crime if it is probable that the child was a party to the crime so that the exception applies only with respect to a child who is 14 years of age or older.
Division 24 of Part 4 authorizes the Minister of Employment and Social Development to make a one-time payment to Quebec for the purpose of offsetting some of the costs of aligning the Quebec Parental Insurance Plan with temporary measures set out in Part VIII.‍5 of the Employment Insurance Act.
Division 25 of Part 4 amends the Judges Act to provide that, if the Canadian Judicial Council recommends that a judge be removed from judicial office, the time counted towards the judge’s pension entitlements will be frozen and their pension contributions will be suspended, as of the day on which the recommendation is made. If the recommendation is rejected, the judge’s pension contributions will resume, the time counted towards their pension entitlement will include the suspension period and the judge will be required to make all the contributions that would have been required had the contributions never been suspended.
Division 26 of Part 4 amends the Federal Courts Act and the Tax Court of Canada Act to increase the number of judges for the Federal Court of Appeal by one and the number of judges for the Tax Court of Canada by two. It also amends the Judges Act to authorize the salary for the new Associate Chief Justice for the Trial Division of the Supreme Court of Newfoundland and Labrador and the salaries for the following new judges: five judges for the Ontario Superior Court of Justice, two judges for the Supreme Court of British Columbia and two judges for the Court of Queen’s Bench for Saskatchewan.
Division 27 of Part 4 amends the National Research Council Act to provide the National Research Council of Canada with the authority to engage in the production of “drugs” or “devices”, as those terms are defined in the Food and Drugs Act, for the purpose of protecting or improving public health. It also amends that Act to provide authority for the incorporation of corporations and the acquisition of shares in corporations.
Division 28 of Part 4 amends the Department of Employment and Social Development Act in relation to the collection and use of Social Insurance Numbers by the Minister of Labour.
Division 29 of Part 4 amends the Canada Student Loans Act to provide that, during the period that begins on April 1, 2021 and ends on March 31, 2023, no interest is payable by a borrower on a guaranteed student loan.
It also amends the Canada Student Financial Assistance Act to provide that, during the period that begins on April 1, 2021 and ends on March 31, 2023, no interest is payable by a borrower on a student loan.
Finally, it amends the Apprentice Loans Act to provide that, during the period that begins on April 1, 2021 and ends on March 31, 2023, no interest is payable by a borrower on an apprentice loan.
Division 30 of Part 4 confirms the validity of certain regulations in relation to the cancellation or postponement of certain First Nations elections.
Division 31 of Part 4 amends the Old Age Security Act to increase the Old Age Security pension payable to individuals aged 75 and over by 10%. It also provides that any amount payable in relation to a program to provide a one-time payment of $500 to pensioners who are 75 years of age or older may be paid out of the Consolidated Revenue Fund.
Division 32 of Part 4 amends the Public Service Employment Act to, among other things,
(a) require that the establishment and review of qualification standards and the use of assessment methods in respect of appointments include an evaluation of whether there are biases or barriers that disadvantage persons belonging to any equity-seeking group;
(b) provide that audits and investigations may include the determination of whether there are biases or barriers that disadvantage persons belonging to any equity-seeking group; and
(c) give permanent residents the same preference as Canadian citizens in external advertised appointment processes.
Division 33 of Part 4 authorizes the making of payments to the provinces for early learning and child care for the fiscal year beginning on April 1, 2021.
Division 34 of Part 4 amends the Canada Recovery Benefits Act to, among other things,
(a) provide that the maximum number of two-week periods in respect of which a Canada recovery benefit is payable is 25;
(b) reduce the amount of a Canada recovery benefit for a week to $300 in certain circumstances;
(c) provide that certain persons who were paid benefits under the Employment Insurance Act are eligible to be paid a Canada recovery benefit in certain circumstances;
(d) provide that the maximum number of weeks in respect of which a Canada recovery caregiving benefit is payable is 42; and
(e) provide that the Governor in Council may, by regulation, on the recommendation of the Minister of Employment and Social Development and the Minister of Finance, amend certain provisions of that Act to replace the date of September 25, 2021 by a date not later than November 20, 2021.
It also amends the Canada Labour Code to provide that the maximum number of weeks of leave for COVID-19 related caregiving responsibilities is 42.
Finally, it repeals provisions of the Canada Recovery Benefits Regulations and the Canada Labour Standards Regulations.
Division 35 of Part 4 amends the Employment Insurance Act to, among other things,
(a) facilitate access to unemployment benefits for a period of one year by
(i) reducing the number of hours of insurable employment required to qualify for unemployment benefits to a national threshold of 420 hours,
(ii) reducing the amount of earnings from self-employment that a self-employed person is required to have to be eligible to access special unemployment benefits,
(iii) providing that only a claimant’s most recent separation from employment will be considered in determining whether they qualify for unemployment benefits,
(iv) ensuring that earnings paid to a person because of the complete severance of their relationship with their former employer do not extend the person’s benefit period, and
(v) providing for an increase in the maximum number of weeks for which regular unemployment benefits may be paid to a seasonal worker if certain conditions are met; and
(b) extend the maximum number of weeks for which benefits may be paid because of a prescribed illness, injury or quarantine from 15 to 26.
It also amends the Canada Labour Code to, among other things, extend to 27 the maximum number of weeks to which an employee is entitled for a medical leave of absence from employment.
It also amends the Employment Insurance Regulations to, among other things, ensure that, for a period of one year, earnings paid to a person because of the complete severance of their relationship with their former employer do not extend the person’s benefit period or delay payment of benefits to the person.
Finally, it amends the Employment Insurance (Fishing) Regulations to, among other things, reduce, for a period of one year, the amount of earnings that a fisher is required to have to qualify for unemployment benefits.
Division 36 of Part 4 amends the Canada Elections Act to provide that the offences related to the prohibition on making or publishing certain false statements with the intention of affecting the results of an election require that the person or the entity making or publishing the statement knows that the statement in question is false.

Budget Implementation Act, 2021, No. 1

[The Assistant Deputy Speaker, Carol Hughes]

Everything seems to be working fine on our end; perhaps the problem is on the hon. member's end.

The problem has now been resolved.

The hon. member for Pierre‑Boucher—Les Patriotes—Verchères can continue his intervention.

[Xavier Barsalou-Duval, Bloc, Pierre-Boucher—Les Patriotes—Verchères, QC]

Madam Speaker, I seem to have gotten cut off for a moment. I think a member had their microphone on, and a meeting host put everyone on mute to turn the member's sound off. I think that probably put me and the Chair on mute. I could be wrong. I am not a tech expert, but that would be my guess.

What I was saying was that we would have expected the government, upon winning a minority, to make an effort to negotiate with the parties, to present a budget and to make concessions. Instead, it dragged things out and took advantage of the pandemic to avoid presenting a budget, to avoid being held accountable and to do whatever it wanted. Once the pandemic arrived, the government came to us with piecemeal legislation that we always had to vote on quickly. We then noticed all of the holes and all of the problems these programs had.

It is now June 2021 and we are hearing all kinds of rumours about a possible election. Meanwhile, we are still on this government's first budget. That speaks volumes. We agree that that is not much of a record, that it is not very impressive.

Let us also talk a little bit about the way this crisis was managed, the way we experienced it as parliamentarians and the way the population saw it. I am not sure that the Liberals were the great champions they sometimes claim to be.

In fact, when looking at the situation, we see that they took advantage of the crisis to try to give contracts to their friends. They arranged for a nice wage subsidy and included a special stipulation saying that political parties would be eligible. That is about it. They arranged things and no one seemed to be aware of it. However, at a certain point, we realized what was happening. We wondered how the Liberals could take advantage of the wage subsidy when their coffers were already full. It was the same for the other parties. The Bloc Québécois is the only party that refused to take advantage of the wage subsidy.

The Liberal Party and the Conservative Party, two political parties that are far from lacking in funds, took advantage of the pandemic to get rich and fill their coffers, at the expense of people who were in need and who needed the support of the government.

We will not stop reminding the House of this, even though the government may not like to hear it. We are going to repeat it because we know that the public is eventually going to have to vote and pass judgment.

We also saw a company being incorporated and, practically the very next day, magically receiving government contracts at prices that were frankly pretty high. First of all, the company did not manufacture equipment or respirators. Second, the people linked to this company were former Liberals.

We saw the WE Charity program brought in, again in a rush. The government claimed it did not have the expertise or staff to run a program. In the end, we realized that this charity had dubious practices. For example, it might get four or five different donors to fund the same project and just change the name on the plaque out front. We discovered that some people in the organization were particularly close to the Liberals and that the government was going to put the group in charge of distributing about $1 billion in grants for “paid volunteer work” without a competition and without consulting anyone. It is a weird story, and I think that many people had a hard time following the government's reasoning, the Liberals' reasoning. It is so hard to explain. We still have a hard time explaining it. The whole thing was called off when the parliamentary committees started looking into this infamous program, which seemed tailor-made for a group that had ties to the Liberals.

There were other problems that may not have bothered people in the rest of Canada very much, but that certainly bothered people in Quebec. In the middle of the health crisis, when people were a bit worried and stressed out, we sometimes wondered if we would be able to get all the products we needed. Some products on the shelves were dangerous and came with no instructions. Some products had no information on them.

In times of crisis, governments show their true colours, and we certainly saw the Canadian government's true colours. As it turns out, French is a frill for the Canadian government. It is a cute little language that the government likes to trot out from time to time to placate francophones whenever we make a fuss, but when the rubber hits the road, French gets tossed aside. That is exactly what happened with product labelling during the crisis.

We also found out how the federal government was managing its medical equipment. When the emergency supply warehouses were opened up, it turned out that the masks were past their expiry date, and lots of the gear in the federal stockpile was no longer usable. Panic ensued, and the government scrambled to bring in equipment from all over the world.

A similar fate befell our vaccine production capacity. We realized it had become all but impossible to make vaccines here. It is possible, but our capacity is greatly diminished. Why? Because Canada has chosen to outsource everything over the years, often at the expense of our local industries.

As I mentioned earlier, some programs had some deficiencies, like the CERB, which created disincentives to work. Many people decided to stay at home instead of going to work, even though there was a need on the ground.

The government decided not to close the borders, even though it was well known that the virus was entering from other countries. It did not come from within Canada. Some people were getting cheques to quarantine after going on holiday, while others had no access to any assistance.

The government felt sorry for the airlines. Yes, they needed help, but ordinary people were not getting refunds for their plane tickets. Their rights were completely violated.

On top of that, the government has taken to lecturing Quebec on how it has handled the crisis. After everything I just pointed out, in my opinion, that is the worst. There is nothing worse than a government that comes along and tells Quebec what to do in its areas of jurisdiction, that gives lessons on how Quebec should manage its health care system when it is incapable of managing its own jurisdictions.

I will conclude there.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Speaker, I want to thank my colleague for raising concerns related to the gaps in the programs for small business.

I would like to ask him about something in respect to seniors. We have seen that many seniors were outraged that the government left out seniors aged 65 to 74 in its plan for a long overdue increase to old age security payments. We have seen seniors struggle through COVID-19.

As our colleague from Hamilton Mountain so eloquently articulated, the Liberals have now created junior seniors and senior seniors. It sounds absurd because it is absurd, but that is what we would have in our country if this government does not fix it in its budget bill. We would have a two-tiered senior system.

Does my colleague agree that the Prime Minister and the Minister of Seniors need to fix this, and do what is right, so we do not have a two-tiered system for seniors? Does he agree we need to give them the support they need so they are not using their savings? Seniors are getting by on very little, and they need this help right now.

[Xavier Barsalou-Duval, Bloc, Pierre-Boucher—Les Patriotes—Verchères, QC]

Madam Speaker, my colleague asked an excellent question.

The phone calls, emails and Facebook messages have been pouring in non-stop. For years, when I have been out speaking to people, both young and older retirees have been telling me that a 50¢ increase in their pension is ridiculous. They feel like they are being made fun of.

Seniors are very frustrated at being disrespected and mistreated by this federal government when they have contributed to society all their lives. It is insulting to receive a 50¢ increase as a result of indexing. That is a joke. What will 50¢ buy in 2021?

Every senior needs support, and the government should listen to them.

[Andréanne Larouche, Bloc, Shefford, QC]

Madam Speaker, I thank my colleague for his very interesting speech.

He showed us the many differences between Quebec and the Canadian provinces.

I know that my colleague has taken a great interest in agriculture, in particular the next generation of farmers. There are very few supports in this budget for the agriculture sector, which is so important. In particular, there is nothing for the Quebec model, which is different from the other provinces' models.

Can my colleague make some suggestions about how the budget could have better supported our farmers?

[Xavier Barsalou-Duval, Bloc, Pierre-Boucher—Les Patriotes—Verchères, QC]

Madam Speaker, I thank my colleague for her question. She was not very specific, so I do not quite know how to answer. Unfortunately, it is difficult for me to answer at this point.

However, with regard to the agricultural model, I can say that, in the past, we were very disappointed to see the federal government sacrificing Quebec at every opportunity in matters involving international trade.

Quebec has an agricultural model that works. The COVID-19 crisis strengthened Quebec's resolve to promote local agriculture and family farms and to take another look at our vision of agriculture so that we can eat high-quality, locally produced food.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Speaker, one of the issues that people in my province have been speaking a lot about is the need for reforms to equalization and to the fiscal stabilization program. Views may not be uniform across the country on that, but one thing on which there is agreement, and that all the premiers have called for, is lifting the cap on the fiscal stabilization program. Provinces agree that it is not reasonable to have a cap on the fiscal stabilization program in light of the nature and objectives of this program.

This is a call supported by premiers in the west and also by Premier Legault. I would like to hear if the Bloc supports this call from the premiers, including Premier Legault, to eliminate that cap as a basic fairness measure for the provinces.

[Xavier Barsalou-Duval, Bloc, Pierre-Boucher—Les Patriotes—Verchères, QC]

Madam Speaker, I thank my colleague for his rather technical question. If I can provide him with a more general answer, I would say that some provinces are very frustrated and have a lot of demands related to the equalization problem, or equalization program, rather. Pardon my mistake.

These provinces would probably have fewer problems if they could raise taxes high enough to meet their financial needs. Often the problem results from the fact that a government makes tax cuts before realizing that it can no longer afford to pay for services. That might be the answer.

[Michael Cooper, Conservative, St. Albert—Edmonton, AB]

Madam Speaker, it is an honour to rise to speak to Bill C-30, the budget implementation act.

The Liberals, after failing to deliver a budget for two years, finally got around to delivering one a few months ago. I have to say that the budget delivers. The only problem is that it delivers in all the wrong ways. The Liberals have delivered a historic deficit of $354 billion, the largest deficit in Canadian history, and the Liberals have delivered a mountain of debt, with the national debt projected to reach $1.4 trillion by the end of this year.

To put that staggering figure in some context, the Liberals have managed to nearly double the national debt in the span of less than two years. This Liberal budget delivers yet another near historic deficit for this year of $154.7 billion, with deficit after deficit projected year after year, and no plan whatsoever to see a return to a balanced budget.

The members of the government say, as one of the excuses that they peddle for the massive deficits and massive debt, that it is all about COVID, and that COVID has necessitated all of the spending, except that simply is not true. Indeed, when one looks at program spending for 2021-22 of $475.6 billion, only a little more than 10% of that is attributable to COVID. Speaking of $475.6 billion in program spending, that represents a 40.5% increase in spending from 2019-20 levels. That is right. It is a 40.5% increase in spending in two years under these Liberals.

In the face of this massive, reckless spending, to paraphrase the great late former U.S. president Ronald Reagan, one could accuse the government of spending like drunken sailors. However, as President Reagan would say that at least the drunken sailors were spending their own money. The same cannot be said for the government. Whose money are the Liberals spending? It turns out that a lot of what they are doing is printing money.

In an unprecedented manner, the Bank of Canada is buying the government's debt. There was a $354-billion deficit last year. Of that, the Bank of Canada bought over $300 billion, or over 80%. We have seen, in terms of the supply of money, an increase of some 20% over this past year alone. That represents an increase in the supply of money that we have not seen in this country since 1974, nearly 50 years ago.

There is a price to be paid for all of this borrowing and all of the spending, and we hear the excuses from the government. The Liberals' justification is to say that now is a better time than ever to borrow and spend because interest rates are low.

Interest rates will not always be low, and it must be said that the government does not entirely have control of interest rates. Market forces also help determine what interest rates will be. Putting that aside, there is a cost being borne by everyday, middle-class Canadians in inflation.

Indeed, the consumer price index for April saw an increase of 3.4%. That was its highest recording since September 2011. It was a 10-year record in the consumer price index, and it was broken one month later when it rose by 3.6%. That has hit Canadians hard in the wallet.

We have seen the costs of just about everything go up. Homeowners' replacement costs increased 11.3% from last year, representing the largest annual increase since 1987. Housing prices have skyrocketed 42% in the span of one year. We have seen gasoline prices increase by about 50% from last year.

Regarding essentials such as groceries, the Canada Food Price Report projects that the average family of four will pay $695 more in groceries this year compared with last year. That represents the largest projected increase in the cost of groceries since the report was first published, more than 10 years ago.

I know that for our silver-spoon Prime Minister and other Liberal elites, $695 is chump change. It means nothing to them. For everyday Canadians, at a time when 53% of Canadians are $200 away from insolvency, $695 can make the difference between putting food on the table and being able to stay in their homes.

For this budget, we have heard the finance minister talk so much about stimulus. By the way, the Parliamentary Budget Officer said it was totally miscalibrated. For all the talk about recovery, I say where are the jobs? There were 200,000 jobs lost in April and 68,000 jobs lost in May. Canada has the second-highest unemployment rate in the G7, and the sixth-highest unemployment rate out of 37 countries in the OECD.

For a government that has spent so much, it has failed to deliver as Canadians fall farther and farther behind. This is a failed budget from a failed Liberal government.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the President of the Queen’s Privy Council for Canada and Minister of Intergovernmental Affairs and to the Leader of the Government in the House of Commons]

Madam Speaker, let me thank the official opposition and their partners for allowing us to debate this particular bill. It is an important piece of legislation, so I appreciate the opportunity to speak to it and ask questions today.

To my friend across the way, does he not see the hypocrisy of some Conservative members saying we need to spend more money in certain areas, in particular on support packages that will cost additional hundreds of millions of dollars, when on the other hand the Conservative right is saying they do not want us spending as much money?

How does he balance what appears to many to be hypocrisy?

[Michael Cooper, Conservative, St. Albert—Edmonton, AB]

Madam Speaker, we have a government that has spent a lot of money, but has not targeted the dollars to help Canadians. The member for Barrie—Innisfil posed a question earlier today about new businesses that have been completely shut out of the government's COVID supports. While small businesses and new businesses were struggling, however, the government had no trouble rewarding Liberal insiders like the Kielburger brothers and the WE organization. I reject the premise of the hon. member's question.

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

Madam Speaker, I agree that a lot of folks across the country are really worried about their futures. My concern is that during this time, Canada's richest folks, the ultrarich, have increased their wealth substantially. I am very concerned that neither the Conservatives nor the Liberals seem to be interested in making sure that the richest Canadians pay their fair share. They do not need to pay more: just their fair share, because they are paying significantly less in taxes than everyday hard-working Canadians.

I am wondering this. Could the member explain why his party refuses to make sure that the richest pay their fair share?

[Michael Cooper, Conservative, St. Albert—Edmonton, AB]

Madam Speaker, with respect to the hon. member for North Island—Powell River, we on this side of the House have been fighting for everyday Canadians, unlike the Liberal government whose policies have benefited some of the very wealthiest Canadians.

What I entirely reject are the efforts on the part of the NDP to redistribute wealth, increase taxes massively and undermine Canada's competitiveness at a time when we are already lagging.

[Paul Manly, Green, Nanaimo—Ladysmith, BC]

Madam Speaker, I too would like to reiterate that we need to help businesses that are starting up that needed help and did not get it. Lots of Canadians did not get help in this situation. However, we have also seen CEOs take advantage of this situation and shareholders have been paid huge bonuses.

Does the hon. member think it is fair that there is pandemic profiteering by the big banks and large corporations when so many small businesses and working people are struggling?

[Michael Cooper, Conservative, St. Albert—Edmonton, AB]

Madam Speaker, no, I do not believe it is fair. We saw one example of that with Air Canada. We need to help Canadians get through this very difficult time, and the best way to do that right now is to move forward with a plan to reopen the economy so that Canadians can get working again and Canada can recover. That was entirely lacking in this budget.