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 (Mrs. Alexandra Mendès), Liberal, Alexandra Mendes]

The hon. member for Haliburton—Kawartha Lakes—Brock.

[Jamie Schmale, Conservative, Haliburton—Kawartha Lakes—Brock, ON]

Madam Speaker, I have to agree with my friend from London and disagree with my friend from Kingston. That was a pretty long speech and I am glad you did step in.

However, I want to talk about the conversation around anything that actually disagrees with the Liberal narrative and of course, the member opposite was making comments that if we disagree with the Liberals, they are all right and list went on.

However, let us talk about what the Liberals did. The first thing they did after the start of the pandemic, they shut this place down for a number of weeks. The next thing they did was brought in legislation to neuter the opposition of its powers into 2022, giving the government absolute power to tax and spend wherever and whenever they felt like it. The next thing they did was the WE Charity scandal. After that, they prorogued Parliament. The list went on. Now we are seeing allegations of what is going on in the military that we have to look into.

All this stuff is happening and meanwhile the Liberals tabled this budget that structurally includes a deficit well into the future. When the member talks about day care, those kids who may, probably not, see this national day care program, they will be paying for that bill well into the future, but the services will not be there unless there are cuts or massive tax increases to pay for it.

Is the member opposite not concerned that they are setting future generations up for failure on this spending plan?

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Madam Speaker, the short answer is no, I am not concerned because we are building a country. We are making a healthier nation because of the investments that we are making today.

The member talked about last summer's prorogation and things of this nature. Tell me when the government sat in the summer prior to last summer? It is well over 30 years ago.

Tell me when it is that the government made itself available for thousands of questions to be asked of it over a summer period in a format sitting inside the House of Commons. I would have loved to have had that opportunity in my 20 years in opposition.

This is a government that believes in accountability and transparency. It is a government that believes in investing in Canada and Canadians.

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

Madam Speaker, I will be splitting my time with my friend, the hon. member for Elgin—Middlesex—London.

It took the government two years to table a budget, this in the midst of a social, health and economic crisis that this country has not experienced in generations. In the face of that, one would have expected the government to put forward a comprehensive economic plan to get Canada out of this crisis and on the road to recovery.

This budget is a long budget. It is a 739-page budget. Despite its length, when it comes to the fundamentals of getting Canada's economy back on track, it is, to put it generously, wanting. This budget has no plan to get Canadians vaccinated, no plan to get Canada's economy safely reopened and no plan to encourage innovation. There is no plan to address Canada's lagging competitiveness or attract investment to Canada. Simply put, when it comes to growing Canada's economy, when it comes to getting Canadians back to work and when it comes to sending a message to the rest of the world that yes, indeed, Canada is once again open for business, this budget misses the mark.

What this budget does do is usher in a sea of red ink, the likes of which this country has never seen. This budget provides for, last year, a deficit of $354 billion. To put that in some context, the deficit for last year is three and a half times the size of the total debt that the government accumulated of $100 billion prior to COVID.

It is hardly as though the government had a record of being good fiscal stewards prior to COVID. Indeed, the government left the cupboard bare during the good times, leaving Canada in a fiscally vulnerable position to weather the COVID storm. That is why, within months of COVID after the first tranche of COVID-related spending, Canada's credit rating was downgraded by Fitch and S&P threatened to do the same unless the government reversed course and got back on track with a fiscally responsible approach.

This budget does not provide any confidence in that regard. This budget will result in the national debt rising to $1.4 trillion by the end of this year, which is double the national debt from a little more than a year ago. That is truly staggering.

This budget will put the Prime Minister in the history books, but for all the wrong reasons. The Prime Minister will go down in history as the Prime Minister who accumulated more debt in the span of seven years than all Canadian prime ministers combined going back to Canada's founding in 1867. Again, that is hardly a record to be proud of.

In the face of all of this red ink, it is no surprise that there was no plan to get Canada's fiscal house in order and no plan to eventually see a return to a balanced budget, which the government inherited from the previous Conservative government under Stephen Harper, and completely missing from the budget was any meaningful fiscal anchor.

The only plan this budget provided is for spending, spending and more spending, burdening future generations like never before, with no end to deficits. This budget lays the framework for forever deficits.

The government likes to say that as we are in a pandemic, we have no choice and these are unprecedented times. That is true, and the COVID pandemic has necessitated some significant spending to help Canadians and businesses get through it, because Canadians are out of work and businesses are unable to operate in the way they were prior to COVID. At every step of the way, we in the official opposition have tried to work constructively with the government to see that there is targeted support and that it is delivered in a timely way to Canadians and Canadian businesses that need help. However, the government's excuse that all of its spending, deficit and debt are attributable to COVID can only go so far.

Under this budget, total program spending for the fiscal year 2021-22 is projected to be $475.6 billion. Of that $475.6 billion, only about 12% is related to COVID. In other words, 88% or so of the government's total program spending is unrelated to COVID. When we consider the $475.6 billion in program spending, that is an increase of a staggering 40.5% from 2019-20 levels.

What this budget contains is massive spending, including billions and billions of dollars of new permanent program spending, despite the fact that the Prime Minister's mandate letter to the Minister of Finance called on the minister not to include any new permanent spending. It turns out that the Prime Minister's mandate letter to the minister was not worth the paper it was written on.

The government hangs its hat on and touts the $101.4 billion in so-called stimulus spending. However, the Parliamentary Budget Officer notes that only $36.8 billion of that so-called stimulus spending is related to COVID, leaving $69.2 billion in so-called stimulus spending. The catch, however, is that, of the $69.2 billion in so-called stimulus spending, some $52.1 billion does not go out the door until 2022 and all the way to 2024. In other words, it will have no immediate impact, which is the very purpose of stimulus spending. It is no wonder that the Parliamentary Budget Officer has said, with respect to the government's so-called stimulus spending, that the government has “miscalibrated”.

With all of the spending, massive deficits and debt, where are Canadians as a result of the government's approach? Canada has among the slowest economic growth rates in the G7; one of the highest unemployment rates in the G7, a full 25% above the G7 average; and the highest level of debt, save for Japan. On top of that—

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

We have to go to questions and comments.

The hon. member for Glengarry—Prescott—Russell.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Madam Speaker, I appreciate my hon. colleague's speech, although I disagree with some of the facts that he has presented.

The Conservatives often make the remark in the House that Canada has the highest debt. However, what they do not tell Canadians is that they factor in provincial debt as well. In fact, Canada has a much lower debt-to-GDP ratio than the U.K., France, Italy, Japan and the U.S. It is just a fact.

I have a question about a theme that has been developing on our side. The Conservatives continue to say that Canada is spending too much. Will they, for once, identify just one area where they would cut?

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

Madam Speaker, as a starting point, the government should abolish the wasteful Asian Infrastructure Investment Bank, which is very helpful to the Chinese Communist regime but very unhelpful to Canadians.

As for all of this spending, this budget projects $40 billion in interest payments on the debt by 2026, which is significantly more than the government spends on EI and the Canada child benefit. There is a very real cost to all of this government spending.

[Kristina Michaud, Bloc, Avignon—La Mitis—Matane—Matapédia, QC]

Madam Speaker, I thank my colleague for his speech. He clearly indicated how the Liberal budget overestimates the impact of stimulus spending on the economy. That is what the Parliamentary Budget Officer thinks. He said that there is only $69 billion in economic stimulus.

In my colleague's opinion, could the government have limited itself to that $69 billion or could it have invested the $100 billion that it invested but in a different way? That way, the government could have dedicated $28 billion to health, as per the request of the provinces and Quebec. Which of the two options would my colleague choose?

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

Madam Speaker, with respect to the member's latter point about health, it is disappointing that we have seen zero dollars in the way of new transfers to the provinces for health, despite the fact that all 10 provinces have been begging and pleading with the government. I note that under the Harper government, health transfers increased by 6% annually.

With respect to the Parliamentary Budget Officer's findings, the Parliamentary Budget Officer projects, as the hon. member noted, that growth from the government's so-called stimulus will be half of what the government projects in its budget. As for new jobs, the PBO estimates only 74,000 new jobs, compared with the 344,000 projected in the budget. Without more, the government's so-called stimulus is a total flop.

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

Madam Speaker, we know that millions of people are worried about losing their jobs. At the same time, Canada's richest people have gotten richer. We have seen excess profits for large corporations that have benefited from the pandemic.

The NDP has gone to the PBO and costed out an excess-profits tax. It would get $8 billion from the companies that profited from the pandemic. We would get $9 billion from a 1% wealth tax on people with over $20 million. We could close tax havens, which would generate tens of billions of dollars in taxes.

Does my colleague believe that we should be charging the superwealthy and those who have made a profit on the pandemic, instead of leaving this on the backs of everyday Canadians? We know that paying down the enormous deficits that have been incurred will mean either a tax increase to the middle class or cuts in services. Does my colleague support ensuring that those who can afford to pay for it should pay their share?

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

Madam Speaker, the Conservatives believe in lifting up all Canadians by reducing taxes, getting Canadians back to work, attracting investment and making Canada more competitive.

When it comes to everyday Canadians, life is becoming less and less affordable, in part because the government is printing money and—

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

Resuming debate, the hon. member for Elgin—Middlesex—London.

[Karen Vecchio, Conservative, Elgin—Middlesex—London, ON]

Madam Speaker, my hon. colleague from St. Albert—Edmonton gave us so much information, and I think we have all learned from it. If I add what I heard from him to what I have to say, we will have a fulsome speech, because like him, I want to talk about individuals. I will get to that.

I am giving my speech from the riding of Elgin—Middlesex—London, and to begin, I want to talk about families, individuals and businesses. We know they are all going through a very difficult time, and I do not think there is a member of Parliament who has not heard the challenges. We have all heard extraordinarily heart-wrenching stories, and we want to make Canada a better place.

I am going to start with some of the positives. I have heard a lot of people say that we are being negative about this, but let us be honest: Last year, if it were not for the opposition parties, there would not have been a wage subsidy to keep businesses afloat. The initial wage subsidy program was 10%, and it was increased later on after pressure from a lot of people on my side, my Conservative colleagues who were small business owners and accountants, and from other colleagues who sit in the other opposition benches. The wage subsidy program is something I can support in this budget.

We know people are continuing to struggle to keep their businesses open. We are hearing a lot of information on this from the CFIB, the St. Thomas & District Chamber of Commerce, in my area, and a variety of other sources. They are indicating the difficulties that many businesses are having. In my local economy, 17% of businesses did better during COVID; however, we have to look at those that did worse. I therefore support the wage subsidy, as having this bridge so we can continue to work out of this crisis is absolutely what we need to do.

The same thing goes for the rent extension. It is another program that had to be tweaked and changed. Again, opposition parties, in particular the official opposition, worked to ensure this it was a good program. I want the government to know that when it comes forward with something, it is not the only one to have great ideas. I can say that all colleagues have brought forward some very good ideas that were adopted by the government in the early days of the pandemic.

There is also the Canada recovery caregiving benefit. Unfortunately, I see that some of my neighbours are still having—

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

We are having issues with the member's connection and the interpretation is not working.

We can now hear the interpretation well, so the hon. member may resume.

[Karen Vecchio, Conservative, Elgin—Middlesex—London, ON]

Unfortunately Ontario continues to see lockdowns, and people are pointing fingers. I will be honest, if we knew there were vaccines, if we knew it was safe for Canadians to get back to work and for children to go back to school, if we knew things would recover at a quicker pace, then I think we would have a lot more faith. That is why the Canada recovery benefit is very important. I do appreciate the extension of it.

This is where I want to get into CEBA loans. This where I want to change where we are going. I had recently asked the parliamentary secretary to the government House leader about these types of things. The government improved the Canada emergency business account. It went from $40,000 to $60,000, allowing business owners to keep up to $20,000. There have been some changes to that, such as repayment of loans and a variety of things.

My concern today is for those entrepreneurs who have been working to start new businesses. In my riding of Elgin—Middlesex—London, a number of businesses have remained on the line of whether they will fail or make it through is incredible challenge. It is an extremely difficult for them. When they call my office, I refer them to the Elgin Business Resource Centre, or the Enterprise Centre, or their banks. I suggest a variety of different things. However, when they are not eligible for these programs, the answer remains no.

We know that a lot of these programs have a list of restrictions. I did get a message back from the office of the minister for small business minister to inform me they had an appeal process for CEBA. It was supposed to be rolled out for people who were denied that assistance, but there still is no appeals process. Shortly, the government will have something so if people want to know why their applications were denied, they might be able to find out.

Those are some of the issues that I continue to have. I have to wonder why the government would not have put something like that in there, knowing that small mistakes could be made. One of my constituents was denied the assistance because there was a reversal on his business account number. He had to reapply and he continued to be denied. To me, that is a very simple slip-up.

However, when people are feeling choked out because of we are going through COVID-19 and the fact that they have to revert to some of these restrictions, something as simple as a transit number on banking information could get transposed, something that we could all switch so quickly and the government does not have a mechanism to deal with that. It is very concerning.

I will talk about a few more businesses.

In the community of Dutton, Margaret Perry opened up a place called the Daily Grind Cafe and Gift Emporium. Unfortunately Margaret opened her business in December 2019, and did not qualify for any of the COVID relief programs.

We have Angela Player, and Angela will do sensationally one day, I have had what she has to offer. She has a business called From the Vines. She is unable to show an up to 20% decrease in her revenues. Angela has invested over $60,000 into her business, but her business has never had that normal period for comparison purposes. I know Angela's business, From the Vines, will make it, but the COVID-19 pandemic has been the biggest barrier for her and there are no programs to assist her. Nobody is there to help her. Her hands are tied. When I referred her to some of these smaller organizations that did get the federal funding, because of the eligibility requirements, they would not assist her.

I think of someone like Craig Voakes. Craig owns what is called the Squad Box in St. Thomas. It is a business built around providing pre and post-game nutrition, hydration and recovery products to hockey, soccer and baseball teams.

As a parent, I am one of those crazy moms. I am on the sidelines, cheering along. I think Craig sees people like me as a perfect person to make a business around. A lot of us will give to our children. We want to ensure they have great opportunities, but our children are not playing hockey, soccer or any of these indoor sports right now. For somebody like Craig, whose entire business is built around that, he does not have the opportunity. As well, Craig started his business in December 2020.

Then there is Purely Wicked. If people come into the city of St. Thomas, I tell them to go to Purely Wicked. It is a fun place and it has so many great little things.

Kim, who owns Purely Wicked, now employs two people. It started it in 2019. She had nothing to which she could compare her information. It is exactly same thing for Shawn Devrie at Given Shop. Some of the six or seven different businesses I am talking about are within half a kilometre, so we are looking at storefront after storefront that may have to close because there just have not been any opportunities.

Finally, I want to end with Karen Nixon. She has worked extremely hard. Before she had her children, she was working three jobs in the physical health field. When I saw that, I knew she would make it. Years ago, she and her husband made a business plan. They worked with F45 Training, which has a way of building its business case. However, what happened to Karen was similar to everyone else. Karen had started her business and would run it while she continued to work. She was laid off because she was in physical health field and there was no business for her.

Last summer, at seven o'clock, each and every, in the morning, people would work out in our backyard because she needed to run her business. That was a year ago. She still cannot open her business today. Therefore, I think of people like Karen and Gary, who I know have given their entire lives and all their savings to their businesses and they have been left without.

I have so much more to add to this, but my biggest concern with this budget is it seems to touch on so many things. It is unfocused and just throws money everywhere, but it does not give direct money for programs to help entrepreneurs and small business owners, the people who create jobs and are the engine of our economy.