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

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

Mr. Speaker, I am pleased to rise today to speak to Bill C-30, which implements certain provisions of budget 2021.

As everyone knows, it is a mammoth and extremely dense bill that contains a wide range of measures. We unreservedly support some of these measures, which we would like to see implemented even if we vote against the budget.

This part of the bill seeks to extend COVID-19 assistance programs, which although not perfect are nevertheless essential, until September. These include the Canada emergency wage subsidy and the Canada emergency rent subsidy. Many businesses that have suffered badly over the past year rely on those programs. Considering how important predictability is in business, of course we are pleased that entrepreneurs will have a clear idea of the programs available to them over the coming months. However, the amounts allocated will decrease gradually throughout the extension period.

However, there is one little thing worth noting. The bill gives the Minister of Finance the power to extend the programs until November 30, 2021, through regulation, without having to go through the legislative process. I believe I am right in thinking and safe in saying that this measure is an insurance policy in case the House is dissolved for a fall election, which would prevent it from enacting a law that would extend the wage subsidy beyond September 27, 2021. I will let my colleagues read between the lines to determine when the government expects the House to resume.

We are particularly pleased that, instead of paying taxes in the year that they received a government assistance cheque and getting a credit in the year that they reimburse the amount, as is currently the case, under Bill C-30, taxpayers will not have to pay taxes on any government assistance that they reimbursed. Those who have just completed their 2020 income tax return could end up paying taxes on the amounts they received through the Canada emergency response benefit. However, even if the government asked them to pay back those amounts, under Bill C-30, any reimbursements made this year make the cheques received last year tax-free.

Another piece of good news is the creation of a hiring subsidy program, which will be in effect from June 6 to November 20, 2021. That program is offered to businesses restarting their activities and hiring or rehiring employees. I am also pleased that taxes will finally be imposed on Internet products and services and Airbnb rentals, which will put an end to the unfair competition that we have strongly criticized.

I would also note the new Canada-wide child care program, even though it is part of a general trend of interference and federal centralization. Fortunately, there is mention of a possible asymmetrical agreement with Quebec and the federal budget statement repeatedly touts the child care system. However, there needs to be assurances that this agreement will translate into full compensation with no strings attached for Quebec for its share of the total cost of the program. Since this federal government likes to interfere in matters that are not under its jurisdiction, I would like to note that family policy and related programs are exclusively under Quebec's jurisdiction.

Bill C-30 provides for a one-time payment of just over $130 million to the Government of Quebec to harmonize the Quebec parental insurance plan with the Employment Insurance Act. Since the eligibility criteria and benefit period for EI have been temporarily modified and increased, Quebec has the right to opt out with financial compensation with respect to the maternity and parental benefits program.

However, Bill C-30 also lays the foundation for a Canadian securities regulation regime, which the Bloc Québécois and Quebec strongly oppose. This bill provides for a significant increase to the budget of the Canadian Securities Regulation Regime Transition Office, so it is not a stretch to conclude that Ottawa wants to strip Quebec of its financial sector. I remind members that the office was created in 2009, and its purpose is to create a single pan-Canadian securities regulator in Toronto. Bill C-30 authorizes the government to make payments to the transition office in an aggregate amount not exceeding $119.5 million, or any greater amount that may be specified in an appropriation act.

Although the Supreme Court ruled on a number of occasions that securities were not under federal jurisdiction, Ottawa finally got the green light in 2018 to interfere in this jurisdiction provided that it co-operate with the provinces and not act unilaterally. History has taught us to be cautious in such situations.

This plan to create a national securities regulator in Toronto is bound to result in regulatory activities transitioning out of Quebec. I will note that the unanimity we have seen in opposition to this bill in Quebec is rather remarkable. All political parties in the Quebec National Assembly, business communities, the financial sector and labour-sponsored funds are against this bill. The list of those who have vehemently expressed their opposition to this initiative includes the Fédération des chambres de commerce du Québec, the Chamber of Commerce of Metropolitan Montreal, Finance Montréal, the International Financial Center, the Desjardins Group and Fonds de solidarité FTQ, as well as most Quebec businesses such as Air Transat, Transcontinental, Québecor, Metro, La Capitale and Molson.

This plan is just bad and must never see the light of day. Contrary to what members opposite are saying, this is more than just a dispute over jurisdictions or a new conflict between the federal government and the provinces. This is quite simply a battle between Bay Street and Quebec. It is an attack on our efforts to keep head offices in the province and preserve our businesses.

Keeping the sector's regulator in Quebec ensures that decision-makers are nearby, which in turn enables access to capital markets for businesses. A strong Quebec securities regulator is essential for the development and vitality of the financial sector. In Quebec, the financial sector accounts for 150,000 jobs and contributes $20 billion to the GDP. That is equivalent to 6.3%. Montreal is the 13th largest financial centre in the world.

A strong financial hub is vital to the functioning of our head offices and the preservation of our businesses. It is a well-known fact that businesses concentrate their strategic activities, in particular research and development, where their head offices are located. This new attack on Quebec's jurisdictions risks having us go the route of the branch plant economy, to the detriment of Ontario.

This potential exodus of head offices could have serious consequences on every level of our economy, since Quebec companies tend to favour Quebec suppliers, while foreign companies in Quebec rely more on globalized supply chains. Just imagine the impact that can have on our network of SMEs, particularly in the regions. As we have seen during the pandemic, globalized supply chains are fragile and make us very dependent on other countries. We will not stop fighting against this plan to centralize the financial sector in Toronto.

We will also keep calling out the government for ignoring the demands of the Quebec National Assembly and the provinces and refusing to increase health transfers from 22% to 35%. As we know, the government is ignoring the will of the House of Commons, since a Bloc Québécois motion calling on the government to substantially and permanently increase federal transfers to the provinces was adopted in December 2020.

The government could well have taken advantage of the fact that the deficit announced in budget 2021 was lower than expected, by $28 billion, which is exactly how much Quebec and the provinces are asking for. With massive spending on the horizon, it is clear that by refusing to increase transfers, the government is making a political choice, not a budgetary choice, to the detriment of everyone's health.

It was a long time coming, but Bill C-30 finally includes the increase to old age security that this government promised during the 2019 election campaign. However, the increase will amount to only $766 per year, or $63.80 per month, and will apply only to seniors aged 75 and over. The increase will not begin until 2022 and is insufficient for seniors and for the Bloc Québécois.

In closing, we will vote in favour of the bill, because we do not want to deprive seniors aged 75 and over of this cheque. We do not want to deprive businesses and workers of the assistance programs they are counting on, but we will continue to fight to ensure that all sectors of Quebec society receive their fair share in a fairer budget in the future.

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

Madam Speaker, the Consumer Price Index for last month was 3.4%, which is outside the historical targets of 0% to 2% and, in fact, outside the 3% transitory target.

In my hon. colleague's opinion, does the budget contribute to further inflation or will it decrease inflation, and are further higher inflation numbers, which I believe will happen, good for his constituents?

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

Madam Speaker, I thank my colleague for his question.

I must admit I did not detect a specific question. Generally, he asked me if the current spending will contribute to inflation or encourage consumption, in other words, if this is a stimulus budget. I gather that is the gist of his question.

Public spending is generally key to a sound economic recovery. Of course, we must not invest indiscriminately, but historically, in times of crisis and turmoil, we have relied on an ambitious public spending agenda. We do not like all the public expenditures laid out in the budget, but we are not opposed in principle to public spending.

We also know that most of these support programs will disappear in the near future as the crisis subsides, so we will not have to rack our brains about where to make cuts, because many of the programs will automatically come to an end.

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

Madam Speaker, with the budget implementation bill, the government has recognized the true value of investing in Canadians throughout very difficult times. Ultimately, what we would like to see is a road to a stronger and healthier economy by having invested in Canadians from coast to coast to coast over the last number of months during the pandemic.

I wonder if my colleague could provide his thoughts on how important it was for the Government of Canada to work with other levels of government to ensure we could maximize the return of the economy in a better fashion.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

Madam Speaker, I certainly cannot be against the idea of the federal government working with other levels of government, far from it.

The problem is that we are talking about a plethora of centralizing programs that are structural in nature. The government is laying the groundwork to majorly encroach on provincial jurisdictions, but its refusal to increase health transfers will soon make things quite frankly unworkable for Quebec and other provinces.

I do not call that working with other levels of government.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, I thank my colleague from Saint-Hyacinthe—Bagot.

I want to ask a more general question about Quebec's jurisdiction. Quebec is ahead of the rest of Canada. Thirteen years ago, we had the opportunity to pass a law to ban the use of carcinogenic pesticides across Canada.

The Bloc Québécois blocked this bill in a minority Parliament, saying that it intruded on provincial responsibilities. There are a number of issues like that where jurisdictions are shared.

I therefore want to ask my colleague this: Would it not be better to have bills that seek to improve people's health and protect the environment?

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

Madam Speaker, I thank my colleague for her question, which she kind of answered herself.

I was not here 13 years ago, but as she pointed out, an intrusion is an intrusion, and any intrusion must be rejected unequivocally.

In many, many ways, Quebec's laws are extremely advanced, much more so than those in the rest of Canada. Quebec is a leader on environmental matters, although there is always room for improvement.

That is why all new programs and legislation must include the right to opt out. Since Quebec is already ahead on most of these issues, it must be able to get its fair share so it can use that money to make even more progress on other fronts instead of paying for something that is not as good as what it already has.

[Peter Schiefke, Liberal, Parliamentary Secretary to the Minister of Immigration]

Madam Speaker, I am pleased to have this opportunity to contribute to the debate on Bill C-30, budget implementation act, 2021, no. 1. The budget reflects the unprecedented times we are living in.

My constituents in Vaudreuil—Soulanges, all Canadians and billions of people around the world have had their lives turned upside down for more than a year by COVID-19. Many people have lost loved ones. Schools, day cares and businesses have had to close. Families have been affected by temporary and long-term layoffs.

The magnitude of this situation cannot be underestimated. This is the worst health and economic crisis that Canada and all of humanity have experienced in generations. Our Liberal government had to present a budget that reflected this reality, and budget 2021 does just that.

This is an important budget focused on three key goals: finishing the fight against COVID-19 and continuing to support families and businesses during the pandemic; investing in the economic recovery and in economic growth in the short and long terms; and, lastly, looking ahead by investing in building a cleaner, safer, stronger and more prosperous Canada for our children and grandchildren.

With respect to our investments to finish the fight against COVID-19, I will start by speaking about investments in vaccines, more specifically our domestic vaccine production capacity in the future.

COVID-19 highlighted the importance of rebuilding Canada's vaccine production capacity, which was lost over the past 40 years. Budget 2021 provides a total of $2.2 billion over seven years to re-establish a vibrant domestic life sciences sector. This amount includes a previously announced investment of $170 million for the expansion of a vaccine production facility in Montreal. These and upcoming investments will equip Canada to produce COVID-19 vaccines and other vaccines that Canadians may need to combat future biological threats.

As we continue to navigate through the highs and lows of this pandemic, many sectors of our economy are still closed or operating at reduced capacity due to provincial health measures. As a result, many of my constituents in Vaudreuil—Soulanges are either out of work or are facing a reduction in income.

To ensure that they continue to put food on the table and support themselves and their families, budget 2021 extends the COVID-19 economic response support measures for individuals by another 12 weeks to September 2021. This includes the Canada recovery benefit, which will reduce gradually over time; the Canada recovery caregiving benefit; the Canada recovery sickness benefit; and it allows for more flexible access to EI benefits for another year, into the fall of 2022. This ensures that those in my riding of Vaudreuil—Soulanges, who are still heavily impacted by this pandemic, including our artists, restaurant owners, tourism operators, those working in the aviation sector and many more, will have the support they need to see it through.

We have also extended benefits for small business owners. Budget 2021 ensures that the Canada emergency wage subsidy, which has helped more than 5.3 million Canadians, will be extended until September 25, 2021.

The Canada emergency rent subsidy, which has already helped more than 154,000 organizations, will be extended from June to September 25, 2021.

Canada emergency business account loans, which have helped more than 850,000 Canadian small businesses, are still repayable by December 31, 2022, but the application deadline has been extended to June 30, 2021.

To help businesses reopen, budget 2021 includes several new programs, such as the Canada recovery hiring program, which offsets a portion of the extra costs employers take on as they reopen.

The objective is to help employers that continue to experience declines in revenues relative to before the pandemic. The program will be available for employees from June 6 to November 20, 2021.

Budget 2021 also includes an expansion of a worker support program that I know will have positive impacts on the lives of hundreds of thousands of Canadians in the years ahead who may find themselves diagnosed with an illness that will require them to take time off work, and that is the extension of employment insurance sickness benefits from 15 weeks to 26 weeks. During my personal battle with cancer, I know how important it is during and after chemotherapy to focus on one's well-being, on one's mental health and on healing.

Budget 2021 proposes funding of $3 billion over five years to deliver on our promise in 2019 to extend these benefits by almost three months. This extension would provide approximately 169,000 Canadians every year with additional time and flexibility to recover and return to work.

The extension of the support programs for families, workers and business owners to September 2021 is vital to the health and safety of many families and businesses in Vaudreuil—Soulanges.

We promised all Canadians that we would be there for them during the pandemic, and that is what we are doing with budget 2021.

We also promised seniors that we would be there to help them. Since 2016, our government has worked hard to do just that. We have already increased support for 900,000 of the most vulnerable seniors across Canada, made historic investments in affordable housing, and invested billions of dollars in mental health care.

In budget 2021, we are continuing on that track by offering a one-time payment of $500 for seniors aged 75 and over in August 2021, as well as a 10% increase in old age security payments starting in July 2022 for seniors aged 75 and over.

We also invested over $3 billion to improve long-term care and $3.8 billion to build an additional 35,000 affordable housing units for Canadian seniors.

For young Canadians who are anxious about their future job prospects in the coming months and years, budget 2021 provides the support they need to build skills, get on-the-job training and start their careers. This includes $721 million to connect Canadian youth with employers that will provide them with over 100,000 new quality job opportunities and a historic $4 billion in a digital adoption program to help 160,000 businesses make the shift to e-commerce, which will create 28,000 new jobs for young Canadians.

It provides $708 million over five years to ensure that we have 85,000 work-integrated learning placements and $470 million to establish a new apprentice service that would help over 55,000 first-year apprentices in construction and manufacturing Red Seal trades.

Finally, it provides an additional $371 million in new funding for the Canada summer jobs program in 2022 and 2023 to support approximately 75,000 new placements in the summer of 2022 alone.

Further, to respond to the mental health impacts of this pandemic, as part of an overall investment of $1 billion in the mental health of Canadians, budget 2021 proposes to provide $100 million over three years to support innovative mental health programs for populations disproportionately impacted by COVID-19, including health care workers, front-line workers, youth, seniors, indigenous Canadians and racialized Black Canadians.

Finally, budget 2021 includes unprecedented investments in the protection and preservation of nature and action against climate change. To enable Canada to reach the ambitious goal of protecting 25% of our nature by 2025, budget 2021 invests $4 billion for small and large-scale conservation projects and $3.16 billion to plant two billion trees across Canada by 2030. To help Canada not only meet but exceed our Paris Agreement targets, budget 2021 invests $8 billion in the net-zero accelerator supporting green technology and renewable energy and creating well-paying jobs in the process.

It also invests $1.5 billion to purchase 5,000 electric public transit and school buses, helping to reduce our greenhouse gas emissions, provide cleaner air and reduce noise pollution in our communities. In addition, to help communities like mine in Vaudreuil—Soulanges that have already begun to experience the impacts of climate change with two record floods in just the last four years, budget 2021 will strengthen climate resiliency by allocating $640 million to the disaster mitigation and adaptation fund for small-scale projects between $1 million and $20 million in eligible infrastructure costs. For communities like mine, with smaller municipalities, this change is going to make all the difference.

With that, I strongly encourage every member of the House to support the measures proposed in budget 2021 and in Bill C-30. These measures will allow us to—

[The Assistant Deputy Speaker, Carol Hughes]

The hon. member's time has expired.

Questions and comments, the hon. member for Cloverdale—Langley City.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Madam Speaker, this past week, Restaurants Canada came to the Standing Committee on Finance and stated that half of restaurants face risk of closure if subsidies are scaled back too soon.

The vast majority of food services businesses have been operating at a loss or barely breaking even throughout the entire pandemic, with nearly half consistently losing money for more than a year. They have been counting on the rent and wage subsidies to be the bridge they need to stay alive until dining restrictions are lifted and they can truly start to recover without the help of emergency support. Why has this Liberal budget still not designed a targeted program for the vital restaurant sector?

[Peter Schiefke, Liberal, Vaudreuil—Soulanges, QC]

Madam Speaker, in fact, all of the restaurant owners I have spoken to have been incredibly grateful for the wage subsidy and the rent subsidy that were put forward. They told me that without those support measures, they would no longer be around.

I am very glad to see in budget 2021 these programs are going to continue throughout the summer. This provides the opportunity for the Minister of Finance to re-evaluate in September whether they need to be extended for a longer period of time, until November. It delivers for restaurant owners and other small businesses in my community of Vaudreuil—Soulanges and all across the country.

[Martin Champoux, Bloc, Drummond, QC]

Madam Speaker, I congratulate my colleague for his speech.

I had to chuckle when he spoke about the two billion trees that his government promised to plant by 2030. Two years have gone by and, as far as I know, the government has yet to plant a single one of those trees.

First, I would like to ask my colleague if there are any studies on the species of trees his government intends to plant, because if it is going to plant two billion of them, it needs to plan ahead a little.

Second, I would like to know if my colleague agrees with promoting the forestry industry, which was the subject of an extremely detailed and interesting report tabled by the members for Jonquière and Lac-Saint-Jean. It might be more cost-effective and even better for the environment to read that report, rather than planting two billion trees over the next eight years.

Essentially, I would like my colleague to comment on his government's nebulous plan.

[Peter Schiefke, Liberal, Vaudreuil—Soulanges, QC]

Madam Speaker, I thank my hon. colleague for his question.

I completely agree that we need a multi-faceted plan to fight climate change. That is what we are implementing.

Our historic $3.16-billion plan includes planting two billion trees, which will help us meet and also exceed our Paris Agreement targets, while ensuring that we leave a healthier Canada for our children and a positive legacy for future generations.

[Leah Gazan, NDP, Winnipeg Centre, MB]

Madam Speaker, budget 2021 does nothing for dental care. It does nothing in terms of going after offshore tax havens. The member talks about the climate emergency, but the budget does nothing to end fossil fuel subsidies. This is concerning, because who is going to pay for it? It is certainly not big oil or big corporations. It is people.

Why is the burden of this debt going to be placed on people rather than big corporations and big oil?

[Peter Schiefke, Liberal, Vaudreuil—Soulanges, QC]

Madam Speaker, there are a couple of points I would like to clarify. Firstly, we are still dedicated to phasing out fossil fuel subsidies by 2025 and we have already been able to remove eight fossil fuel subsidies. This budget delivers in so many ways with regard to climate change. In fact, it is the largest investment ever made by any government in history in reducing greenhouse gas emissions.

The plan that was released by the Minister of Environment and Climate Change in December shows very clearly how, through these investments and by working with provinces and territories, we are not only going to meet but exceed our Paris Agreement targets. It is something that makes me very proud for my children, my children's children and all future generations of Canadians.