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

This bill was last introduced in the 43rd Parliament, 2nd Session, which ended in August 2021.

Sponsor

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

June 23, 2021 Passed 3rd reading and adoption of Bill C-30, An Act to implement certain provisions of the budget tabled in Parliament on April 19, 2021 and other measures
June 21, 2021 Passed Concurrence at report stage of Bill C-30, An Act to implement certain provisions of the budget tabled in Parliament on April 19, 2021 and other measures
June 21, 2021 Failed Bill C-30, An Act to implement certain provisions of the budget tabled in Parliament on April 19, 2021 and other measures (report stage amendment)
June 14, 2021 Passed Tme allocation for Bill C-30, An Act to implement certain provisions of the budget tabled in Parliament on April 19, 2021 and other measures
May 27, 2021 Passed 2nd reading of Bill C-30, An Act to implement certain provisions of the budget tabled in Parliament on April 19, 2021 and other measures

Budget Implementation Act, 2021, No. 1Government Orders

May 11th, 2021 / 11:25 a.m.
See context

Liberal

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

We have not yet received a complaint, but we do know the interference is affecting us all.

Budget Implementation Act, 2021, No. 1Government Orders

May 11th, 2021 / 11:25 a.m.
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Bloc

Martin Champoux Bloc Drummond, QC

Madam Speaker, on a point of order.

I would just like to step out of my area of expertise for a moment and give my hon. colleague some technical advice. The microphone boom is flexible. If my colleague tries to unfold it slightly, it will automatically move the microphone the correct distance away from her mouth, which should help solve the problem.

Budget Implementation Act, 2021, No. 1Government Orders

May 11th, 2021 / 11:25 a.m.
See context

Liberal

Judy Sgro Liberal Humber River—Black Creek, ON

Madam Speaker, I thank my colleague for the help.

This would increase women's participation in the workforce and is a plan to offer each child in Canada the best start in life. It will aim to reduce fees for parents with children in regulated child care by 50% on average by 2022, with a goal of reaching $10 per day, on average, by 2026, everywhere outside of Quebec. Budget 2021 will invest almost $30 billion over the next five years and provide permanent, ongoing funding.

There has been a lot of discussion over whether this budget is fiscally responsible. Canada entered the pandemic in a strong fiscal position. This allowed our government to take quick and decisive action supporting people and businesses, and to make today's historic investments in the recovery.

Systemic racism is a painful reality for too many people. In particular, Black Canadian communities have suffered immensely during COVID-19, and the events of the past year have highlighted the inequities and racism targeted at racialized communities. Our government is taking action to tackle racism, support racialized communities and respond to the uneven impact of COVID-19. As we build back better and recover from the pandemic, we will continue to address systemic racism and empower communities by bridging the gaps that hold Canada back from reaching its potential.

Budget 2021 outlines the government's plan to build a healthier, more inclusive and more equitable Canada for everyone. The budget proposes $200 million toward a Black-led philanthropic endowment fund to support Black-led charities and organizations serving youth and social initiatives, as well as $100 million for supporting Black Canadian community initiatives. Both will be administered through Employment and Social Development Canada for 2021-22. There will also be a new anti-racism grant program to combat rising hate and racism during COVID-19 and a national coalition to support Asian-Canadian groups.

We will be enhancing the communities at risk with empowering and enforcing security infrastructure programs to protect communities at risk of hate-motivated crimes. We will expand access to community-led mental health programs for indigenous peoples, and racialized and Black Canadians. This is a historical first of its kind, groundbreaking, and an investment that we are speaking about. These ventures will have a direct positive impact on the communities I represent for years to come.

My apologies to my colleagues and the translators for the difficulties with my microphone. I thank them for their help.

Budget Implementation Act, 2021, No. 1Government Orders

May 11th, 2021 / 11:30 a.m.
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Conservative

Marty Morantz Conservative Charleswood—St. James—Assiniboia—Headingley, MB

Madam Speaker, I know the member did touch very briefly on the issue of fiscal responsibility, but it is that area I want to discuss with her.

A couple weeks ago when the finance minister made her speech, she basically said, and I am paraphrasing, that it would be irresponsible not to incur more prospective debt because interest rates are so low. I know this morning the headline on CNBC is that the 10-year Treasury yield in the U.S. has risen amid inflation fears.

Last week, U.S. Secretary of the Treasury Janet Yellen said she was concerned that interest rates might have to go up because of inflationary concerns. The Minister of Finance in New Zealand, who is a Labour minister, also recently said they will move to reduce debt and return to surplus as a responsible government should.

Given all of this, why is the Liberal government not following suit and taking heed, with respect to the possibility of inflation and interest rates rising, by bringing in fiscal anchors and a plan to get back to balance?

Budget Implementation Act, 2021, No. 1Government Orders

May 11th, 2021 / 11:30 a.m.
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Liberal

Judy Sgro Liberal Humber River—Black Creek, ON

Madam Speaker, the issue of fiscal responsibility is important to each and every one of us. I would say all members of the House care about the fiscal responsibility avenues of our country. Clearly, we have met the challenges and continue to do so. This pandemic is still not over. We are still trying to help as many people in our country as possible.

We will deal with this, and we will have a plan to get ourselves back to the point where we want to be, but for the moment I believe we have to continue to help people overcome challenges and get our economy to bounce back as quickly as possible. By making these kinds of investments and helping put money in people's pockets, I expect that will happen much faster.

Budget Implementation Act, 2021, No. 1Government Orders

May 11th, 2021 / 11:30 a.m.
See context

Bloc

Alexis Brunelle-Duceppe Bloc Lac-Saint-Jean, QC

Madam Speaker, I congratulate my colleague on her speech despite the poor sound quality.

She stated that she was proud of what her party did for seniors in the recent budget, which increases old age security for those 75 and up.

If my colleague was in my riding office, she might feel a little less proud. Every day we receive telephone calls from people who are angry that they are not entitled to the increase because they are not at least 75 years old. These people are just as affected as the others because the cost of medications and groceries has increased. However, their purchasing power has not, and they currently feel cheated, alone and ignored.

I would like to ask my hon. colleague what she thinks these people are feeling. What would she have to say to people aged 65 to 74 who are not getting an increase? How can she explain this to them?

Budget Implementation Act, 2021, No. 1Government Orders

May 11th, 2021 / 11:35 a.m.
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Liberal

Judy Sgro Liberal Humber River—Black Creek, ON

Madam Speaker, my colleague was not the only one getting those phone calls. I think many of us did.

We talked about fiscal responsibility with my previous colleague, trying to be fiscally responsible while at the same time trying to help as many people as possible. People are living much longer today than they used to and the costs as people get older are much higher for those 75 and older than they for people between the ages 65 and 75. We would have loved to have done this kind of an increase for people aged 65 and older, but while we are trying to help people, we are trying to be fiscally responsible as well.

Budget Implementation Act, 2021, No. 1Government Orders

May 11th, 2021 / 11:35 a.m.
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NDP

Charlie Angus NDP Timmins—James Bay, ON

Madam Speaker, I was speaking with a young Canadian who went to work in the United States, and within a month, she had the vaccine. She was called three days in a row by three different health agencies in her city to get the vaccine. I compare that to the Ottawa workers I know who are relying on Twitter, word of mouth, rumour. Two young workers who I spoke to in Toronto took an Uber 35 minutes across the city on the wild off chance they might get the vaccine.

We have to admit that between the feds and the provinces, Canada has absolutely failed in the delivery of the vaccines. We have had politicians patting themselves on the back, but there is such uncertainty for so many of our young millennial workers, our Gen Z workers, the front line workers. The fact that they have no other choice but to rely on Twitter to find out where they can get a vaccine is a real condemnation of the government's response to the pandemic.

Budget Implementation Act, 2021, No. 1Government Orders

May 11th, 2021 / 11:35 a.m.
See context

Liberal

Judy Sgro Liberal Humber River—Black Creek, ON

Madam Speaker, this pandemic has been a tremendous challenge for everybody, the provinces, the federal government. It was not something that we had a plan on how to do the rollout. I think everybody has done the best they could. A lot of issues—

Budget Implementation Act, 2021, No. 1Government Orders

May 11th, 2021 / 11:35 a.m.
See context

Liberal

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

Resuming debate, the hon. member for Thérèse-De Blainville.

Budget Implementation Act, 2021, No. 1Government Orders

May 11th, 2021 / 11:35 a.m.
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Bloc

Louise Chabot Bloc Thérèse-De Blainville, QC

Madam Speaker, I hope to avoid having any more microphone problems. If I do have any, I know I can count on my hon. colleague from Drummond to speak up; I rely on his sound advice.

I am pleased to take part in the debate on Bill C-30, budget implementation act, 2021, no. 1. My initial observations are that this budget sprinkles billions of dollars on just about everyone. The budget implementation bill contains a number of half measures, and we have noticed several things that are missing. For a stimulus budget, what it lacks above all is meaningful measures.

I would like to begin my speech by talking about the labour-related announcements included in the budget and pointing out how positive they are. The Minister of Labour is implementing one of the commitments included in her mandate letter, specifically to amend the Canada Labour Code to increase the minimum wage to $15 an hour. Although this measure affects only about 26,000 federal employees, it nevertheless sends a message to everyone who has come out of the shadows as a result of the crisis.

Madam Speaker, I am hearing a conversation going on, and a member's voice—

Budget Implementation Act, 2021, No. 1Government Orders

May 11th, 2021 / 11:40 a.m.
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Liberal

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

I cannot see which member it is, but I would ask that—

Budget Implementation Act, 2021, No. 1Government Orders

May 11th, 2021 / 11:40 a.m.
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Bloc

Louise Chabot Bloc Thérèse-De Blainville, QC

It is the member who spoke just before me.

Budget Implementation Act, 2021, No. 1Government Orders

May 11th, 2021 / 11:40 a.m.
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Liberal

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

I would ask the member for Humber River—Black Creek to put her mike on mute, please.

The hon. member for Thérèse-De Blainville.

Budget Implementation Act, 2021, No. 1Government Orders

May 11th, 2021 / 11:40 a.m.
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Bloc

Louise Chabot Bloc Thérèse-De Blainville, QC

Thank you, Madam Speaker. Clearly, the microphones are a real problem.

I will continue my speech.

I was saying that raising the minimum wage to $15 was sending the right kind of message. We found out that all our guardian angels, all the essential workers, who were brought out of the shadows by the pandemic, earned low wages. By ensuring them a minimum wage of $15 an hour, we are sending them the right kind of message.

Still on the subject of labour laws, I would say this is a half measure. It is a good start, but it is only one step.

With regard to the practice of contract flipping, we can see the intention to add the word “airport” to the Canada Labour Code. The airport sector is hardest hit by this practice, which undercuts its workers. This is a demand that has long been supported by the workers of this industry.

I will now remind members of the situation and what constitutes contract flipping.

In the airport sector, the workers and unions have no leverage to protect the working conditions they have fought for over time. Consequently, with contract flipping, where the work is given to a different subcontractor, workers lose everything. They lose their jobs and working conditions. The subcontractor has no obligation to them, and so the workers' salaries can even be cut. This destroys lives and careers.

Workers could be hired by a new employer, but they have to start at the bottom, despite having 25 years' experience, for example. However, the work is the same, they must work with the same tools and equipment and work the same schedule. By adding the term “airport” in the budget implementation bill, there is some protection for these workers when contract flipping occurs.

I will now speak about half measures, since the Liberals seem to want to only protect salaries.

That is what happened during the recent dispute between Swissport employees and the Montreal-Trudeau and Mirabel airports. The Swissport employees' contract was changed.

Workers who used to earn $23 per hour are now earning $16 per hour for the same work. That obviously makes no sense. This bill would rectify situations like that. It has to go further, though. Why stop halfway?

This is a half-measure. Pay should not be the only thing the law protects. Working conditions, pension plans, insurance plans and union recognition should also be protected. That is what people want, and it is the right thing to do. That is what we are calling for, and that is what unions are calling for. We hope this part of the bill will be improved so we can go all the way.

When it comes to a given situation or practice, what we are asking for is simple. We do not want workers to suffer when the supplier changes. If the government tackles a particular issue, it might as well make sure that issue will not come up again later because it only went halfway. I am expecting to see amendments in this area.

There is something missing in our labour laws, something that workers have long called for. The government says it wants to protect workers and the middle class. That is easy to say but they are unwilling to lean left to better protect people in situations where they are really struggling. Something is missing, and that is anti-scab legislation to stop employers from using scabs in a labour dispute.

In Quebec, the issue has already been settled. The Quebec Labour Code prohibits the practice. Quebec's anti-scab legislation was adopted in 1977, but there is nothing like it in the Canada Labour Code.

Using scabs during a strike is a completely outdated practice, and yet employers have no qualms about exploiting this weakness in the legislation.

For example, in February 2020, employees of the City of Fredericton had their jobs stolen by scabs in the middle of a lockout. There was a similar situation in June 2020 for the energy workers at the Co-op Refinery in Regina, as well as in March 2020, in New Brunswick, involving the workers of the Red Pine landfill.

Also, what about the situation at the Port of Montreal? In August 2020, the representative of the employer indicated that he intended to work with replacement workers or managers, ignoring the rights of unionized workers. We even saw that in the dispute between the International Association of Machinists and Aerospace Workers, or IAMAW, and Swissport, which I was talking about earlier with regard to contract flipping, and the workers went on strike. The employer took advantage of the opportunity to hire scabs to drag out the negotiations. The employer had no interest in quickly settling the dispute.

All that to say that the government could have taken action and corrected an injustice by passing anti-scab legislation, but it failed to do so with Bill C-30.

Now I would like to quickly talk about the employment insurance system. It is unbelievable to think that, after all these years, with all of the studies and consultations that have been done, the government is not doing anything about this social safety net that is so important for workers receiving EI benefits, workers—