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

[Ted Falk, Conservative, Provencher, MB]

Madam Speaker, the Liberals talk a great game when it comes to building back and building back better, but the budget does not even include a plan to build. The member has very clearly articulated how the Liberals could have focused a little more on the trades and had something in the budget to encourage folks to get educated and trained in the trades. Could the member expand on how that is lacking in this budget?

[Arnold Viersen, Conservative, Peace River—Westlock, AB]

Madam Speaker, the crux of my speech was waiving interest on apprenticeship loans due to COVID. For those paying interest on apprenticeship loans, the interest would be waived for a certain period of time. While I commend that, if people are not working, having the interest deferred while not getting jobs means they are still in the same trouble. I do not see anything in the budget or the budget implementation act, Bill C-30, which we are discussing today, that would get Canada building things again or get our natural resource development kick-started.

[Gerald Soroka, Conservative, Yellowhead, AB]

Madam Speaker, I rise today to speak to the Liberal budget and raise concerns on several fronts. When I was elected in 2019, and in the years prior during the first mandate of the Liberal government, we saw deficit after deficit with no clear plan for balancing the budget. The grand plan for the budget to balance itself was failing. Now here we are a year and a half since the last election, and the $20-billion deficits we were concerned about then seem like a drop in the bucket compared with the enormous budget we are debating today. For years, the Conservatives warned the government about spending the cupboards bare when times were good, and now we are facing the repercussions of that.

The pandemic was unavoidable. No matter which party was in power, there would have been large costs associated with COVID. However, this brings to mind the famous saying that life is 10% what happens to us and 90% how we respond to the challenges thrown our way.

I will take some of my time today to reflect on the failures of the Liberal government and the ways it was too slow to act, which cost Canadians dearly.

First, it was early January 2020 when the Conservatives raised concerns about COVID-19 and called upon the government to take action at our borders. It was not until late March, when numerous COVID cases had already entered Canada, that the government took action. This delay in action would cost us big time. As opposed to a proactive response to the pandemic, what we had was a reactive one.

Second, the government failed to implement and utilize widespread rapid testing. Widespread rapid testing would have allowed more businesses to stay open, as there could have been better testing and tracing. Instead, for the past year, businesses have been teetering on the edge between not being allowed to stay open at all or being allowed to open under strict rules.

Canadians are now 15 months into this climate of uncertainty, with the Liberals only making things worse by not providing them with a clear plan to reopen our economy. I was deeply disappointed when the government voted against our opposition day motion to provide Canadians with certainty and establish a clear plan to reopen our economy.

I believe $354 billion is a staggering number. That is how much debt the government has added to Canada's debt load for 2020-21 alone, bringing the total amount of debt added by the Liberals since 2015 greater than that of all other governments combined. Let us break that number down. The largest purchase that most Canadians will make in their lives is the purchase of a home. Currently, with rapid inflation in the housing market, the average Canadian home is worth $716,000. This means the homes Canadians spend the better part of their lives paying for could be purchased nearly 500,000 times over in this year's federal budget.

When I think about the deficits we are accumulating, what concerns me most is the fiscal mess we are leaving behind for future generations to deal with. The interest on our debt is forecast to be $30 billion per year by 2026, and that is with low interest rates. To put that in perspective, this budget commits $30 billion to child care over the next five years. In the same time frame, we could spend that amount five times over simply just servicing our debt. Therefore, it is extremely important that we return to a balanced budget as soon as possible, so that we are not further increasing what we are paying in interest payments and can instead put money toward helping Canadians get ahead.

A few months ago, I stood in the House and spoke to Bill C-14 and to my concerns with raising our debt ceiling to $1.8 trillion, an increase of $663 billion. My colleague, the member for Abbotsford, compared this to asking for a line of credit from taxpayers but not saying where that money will be spent. Now, in this budget, we finally have some answers as to where this money will be spent and where it will not be.

Alberta's oil and gas industry has once again been forgotten by the Liberals. In the 725 pages of this budget, the words “oil and gas” are mentioned only once in relation to the wage subsidy. While the wage subsidy has helped the sector through COVID, it is not what this sector needs to prosper, and the temporary wage subsidy does not address the root issue of red tape and government roadblocks. When our oil and gas industry does well, Canada does well, and as the most ethical oil producer in the world, we should be creating more economic opportunities for oil and gas by getting pipelines built and supporting our world-class technology and our emerging industry in carbon sequestration. This budget leaves behind the oil and gas industry and all the economic prosperity that comes along with it.

The Conservatives know that spending is required to recover our economy. We had a strong recovery plan after the 2008 financial crisis. We made targeted investments, got Canada's finances back on track and returned to a balanced budget by 2015. However, make no mistake: This budget is not the same thing. It does nothing to secure long-term prosperity for Canadians. Instead, it presents a plan for a reimagined Canadian economy, as the Prime Minister put it. It is a plan that dabbles in risky economic ideas such as abandoning our oil and gas and natural resource industries, leaving our economy in a precarious position. This is not stimulus spending focused on creating jobs, but spending on the Liberals' partisan priorities.

When I talk about targeted support being needed, an area that comes to mind where this budget has a shortfall is tourism. COVID-19 has decimated the tourism industry in Canada, with many businesses on the brink, permanently closing or coming out of the pandemic with large debts. There is no doubt that the programs currently in place are helpful. However, I worry the $500 million allocated to tourism recovery is not enough, especially when the Liberals continuously fail to provide us with a plan to reopen our economy.

Canada's tourism industry has a similar GDP to that of the oil and gas industry, and while at least tourism, unlike oil and gas, is getting some money through this budget, $500 million is not adequate when I look at all the tourism businesses from coast to coast that need support. It is extremely important that we fully recover the tourism industry, especially in communities that rely on the industry as a significant part of their economy, such as the municipality of Jasper in my riding. Approximately 48% of the municipality's GDP was related to the tourism industry.

Another area of the budget that stuck out to me was the unfair and unjustified old age security increase for seniors over 75, as there was nothing for seniors aged 65 to 75, who have also been struggling throughout the pandemic. Statistics Canada recently reported that inflation has surpassed the Bank of Canada's 2% target and is now reaching 3.4%. Policies like the Liberal carbon tax and money printing have driven this inflation, and old age security payments must reflect that. Perhaps when we get to questions after my speech, a Liberal member can explain why they believe 65- to 75-year-olds are immune to inflation. It is far too often that seniors are emailing my office and saying they feel let down by the government's failures to support programs.

To conclude my remarks today, I would like to reiterate that I cannot support this budget because of the staggering deficit and the fact that the new spending in this budget is ideologically driven and completely abandons our oil and gas industry. This long-anticipated budget is a major letdown for western Canadians.

I look forward to questions from my colleagues.

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Madam Speaker, I have heard the Conservatives talk a lot about the amount of debt that has been taken on during the pandemic, but I would argue that it has been a requirement to take care of Canadians throughout this very difficult time.

What I find perplexing about this is the fact that the Conservatives voted for those pandemic measures and all of the spending worth hundreds of billions of dollars, quite often through unanimous consent motions. It would have taken just one of them to say no and it would not have passed. It would have triggered a whole series of events to have these bills go through the committee stage and be properly vetted. During that time, the member could have pointed out his concerns, but he did not. He voted in favour of them.

Can the member explain to the House why he voted in favour of those unanimous consent motions to spend the money if he is going to be critical of it now?

[Gerald Soroka, Conservative, Yellowhead, AB]

Mr. Speaker, I would like to point out that if the member had actually been paying attention to my speech, he would have noticed that I said it did not matter which political party was in power at the time; there would have been huge amounts of spending. Obviously he must have missed that section. The money had to be spent at that time.

My concerns are about the late response by the Liberals toward COVID. They did not address the issues quickly enough by closing our borders. That was one of the issues I brought forward.

To conclude, I feel the Conservatives supported Canadians throughout this COVID situation, and if the Liberal member did not quite understand that in my speech, I apologize for his—

[The Deputy Speaker, Conservative, Bruce Stanton]

Questions and comments, the hon. member for La Pointe-de-l'Île.

[Mario Beaulieu, Bloc, La Pointe-de-l'Île, QC]

Mr. Speaker, I liked my colleague's intervention on old age pensions.

In 1975, the old age security pension represented 20% of the average industrial wage. Today, it only covers about 13%. By the time young people turn 65, it is said that their pension will be worth 8%.

What does the member think of our proposal to increase the pension for all seniors starting at age 65?

What does he think of increasing it to $110 over three years so that they can regain some of the purchasing power they have lost?

[Gerald Soroka, Conservative, Yellowhead, AB]

Mr. Speaker, that is a very good question. As my colleague will recall, when a motion was put forward in the House, the majority of MPs voted in favour of the increase, as he said, for our seniors, who built this country. We need to support them in their time of need, and without increasing their pensions, I do not see how they are going to survive as we proceed forward. I definitely agree with him. I voted in favour of that, as did the majority of the House, but the Liberals did not. That is one thing I do support.

[Ted Falk, Conservative, Provencher, MB]

Mr. Speaker, I want to acknowledge that in his former life, my colleague was the mayor in one of his communities. As the mayor, he would have been seized with the concept that every annual budget should at least have a plan in it. Of course, the Liberal budget no longer appears to be annual; it seems more like a biennial event.

Is there any semblance of a plan in this budget that my colleague can detect?

[Gerald Soroka, Conservative, Yellowhead, AB]

Mr. Speaker, when I was mayor, as the member for Provencher mentioned, I knew that we could not run deficits as a municipality. We had to have a proper plan in place on what we were going to address and how we were going to see our future grow.

That is one thing that was missed in this budget. I was hoping with much anticipation, like many other MPs, that it was going to be a great budget that would show how we were going to progress into the future, how we were going to open up our economy and how we were going to create jobs. I keep saying the word “how”. It is a shame that we do not see how this is all going to be done. That is the challenge with this budget, and one of the many issues I have with it.

[Mel Arnold, Conservative, North Okanagan—Shuswap, BC]

Mr. Speaker, it is an honour to rise in the House today to speak to Bill C-30, an act to implement certain provisions of the budget tabled in Parliament on April 19, 2021.

As always, I rise to represent the good citizens of the North Okanagan—Shuswap. They have been doing their part during this pandemic, but have seen this government let them down.

In previous budget debates and examining the Liberal deficits in the range of $18 billion to $20 billion, I had stated how these deficits created a public debt amounting to about $500 for every living Canadian. That is $500 for every person in Canada, whether they have the means to repay it or not. For the fewer than 50% of Canadians who are in the workforce and able to repay debt, their share was exponentially more than $500 per person on average.

Throughout this pandemic crisis, I have supported emergency spending, which was necessary to help individuals and small businesses get through the layoffs and business shutdowns caused by the restrictions required to prevent the spread of the virus. Members from all parties, and indeed all Canadians, have invested varying levels of trust in this government to spend where necessary to protect Canadians, to end the pandemic and to help Canadians and employers who required assistance along the way. In more than one way, Canadians had no choice but to trust this government to spend money and deliver a pandemic response.

How has this government treated the trust of those who depend on it? Well, scandals have emerged and proven the self-evident truths that this government has reportedly failed to focus and deliver the investments required to secure the future of all Canadians. Crisis spending was and is clearly still required, but without a plan, spending without controls never delivers the outcomes that are needed.

One outcome of the government's spending that we can all bank on is the additional $343 billion in national debt that the government has already added, which works out to $9,270 for every Canadian, whether they are able to repay it or not. That means, once again, that those in the workforce who are potentially able to pay down debt have been handed another tax bill of $20,000 each by this government. What is worse is that the government still has no clear plan for getting Canadians back to work to start paying down the debt of the 2016 to 2020 deficits, and now this new added debt.

I have reviewed the budget and searched for the priorities identified to me by the good people of North Okanagan—Shuswap; the priorities that I have consistently relayed to this government on behalf of my constituents. Unfortunately, in budget 2021, this government has failed to recognize some vitally important needs.

Affordability is something weighing on the minds of many Canadians and, once again, this government has failed to recognize the reality in this budget. Seniors on fixed incomes see the cost of groceries and everyday living growing faster than their pensions. With no way of increasing their incomes, seniors are already worried that the future increases in taxes to pay for this government's spending will leave them with fewer dollars for daily living.

Young families see the cost of their first home growing faster than their income, and they need a plan to make home ownership more affordable. As the inflation rate has hit 3.4%, the highest level in a decade, these young families can only fault this Liberal government, with its policies of flippantly printing and spending money, for their inability to keep up with rising costs.

On infrastructure, over the years I have advocated on behalf of municipalities and first nations in need of infrastructure programs to help grow their communities and secure the future of their residents and members. The one-time investment of $2.2 billion to address infrastructure priorities in municipalities and first nations communities through the federal gas tax fund is not the long-term commitment the communities are looking for. When major infrastructure projects often take years to implement, a one-time injection is somewhat like the Prime Minister's promise of a one-shot summer. There is no plan to follow through.

On investments in aquatic invasive species, AIS, I have heard from numerous conservation organizations, municipalities, first nations and regional districts that are all justly concerned about the persistent threat of aquatic invasive species to wildlife, ecologies and economies in the North Okanagan—Shuswap.

In 2019, the Prime Minister directed the fisheries minister to make new investments in the fight against invasive species. Nearly a year and a half later, British Columbians are still waiting for the government to finally provide some new resources to protect our waters from invasive species.

Having served with the fisheries minister for years on the fisheries committee, the minister knows that the introduction of Zebra and Quagga mussels to B.C. waters would devastate our ecosystem and local economies, yet she persists in withholding the new investment the Prime Minister mandated her to make.

More needs to be done and Canadians deserve better. Throughout the pandemic, I have heard from hundreds of constituents doing their best to contend with the challenges they face. One common thread that I see in the input and requests I have received is that Canadians need a plan to help them secure their future, a long-term national recovery plan. Canadians want a plan that will secure their jobs. Businesses have been contacting me saying they are unable to fill shifts because of disincentives for people to go back to work.

That is why the Conservatives put forward a back-to-work bonus plan to help Canadians transition back to work, while gradually reducing the need for government benefits. Canadians want a plan that will secure accountability. Constituents have contacted me tired of the breaches of ethics by the Prime Minister, his cabinet and caucus. That is why Conservatives adopted the policy put forward by one of my constituents to strengthen legislation around accountability and transparency.

Constituents want a plan that will secure mental health. We all know someone who has been impacted by mental illness and been unable to access the support they need. Canadians need a plan that recognizes mental health is health.

Canadians also want a plan that will secure the country. Early in the pandemic, we learned that Canada was not prepared and that stockpiles of PPE had been shipped to China by the government. Canadians need a plan that ensures we are prepared for the next threat to our security, whatever threat that may be.

Canadians want a plan that will secure our economy, rather than borrowing and printing more money and driving up inflation. Canadians need a plan that provides stimulus measures that are targeted and time limited to avoid creating a structural deficit.

These are the differences between the Liberal government's budget and the implementation act, and our Conservative plan to secure our future.

When I hear of seniors' drop-in organizations that have been forced to close because they spent their last dollars paying utility bills and got no help from the government to remain solvent so they could be there when restrictions are lifted again, I see a government that has failed its citizens. When I hear from businesses that could be growing except they cannot find workers to fill shifts, I see a government that has failed. When I hear from first nations, municipalities and community organizations that the government is not providing the protective measures mandated by the minister, I see a government that has failed.

Canadians deserve better and I look forward to working with the good people of the North Okanagan—Shuswap in our pursuit of the plans and resources needed to secure the future and the future of all Canadians.

[The Deputy Speaker, Conservative, Bruce Stanton]

The hon. member for North Okanagan—Shuswap will have five minutes for questions and comments when the House next returns to debate on the motion.

It being 6:11 p.m., the House will now proceed to the consideration of Private Members' Business as listed on today's Order Paper.

The House resumed from May 26 consideration of the motion that Bill C-30, An Act to implement certain provisions of the budget tabled in Parliament on April 19, 2021 and other measures, be read the second time and referred to a committee.

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

Madam Speaker, as I speak to Bill C-30, I want to begin with the Prime Minister's mandate letter to the new Minister of Finance. The Prime Minister, in his mandate letter, instructed the new minister to avoid creating new permanent spending. In other words, he instructed her to not create any additional structural debt, yet the flagship of this budget is a national day care program that does just that.

When the Minister of Finance finally presented the budget, she indicated that the government's national day care program was going to save the day. It was to be the key element in restoring our economy post-COVID by giving every mother the child care they needed at an affordable rate to enable them to return to or get real, paying jobs. The impression made was that every woman's innate desire to be engaged in the workforce, coupled with the national day care program, would enable, empower and enlighten the female portion of our population to do their part to create a healthier GDP for Canada.

It deeply troubles me when the minister for the status of women stands in the House and expresses her dismay that women still carry the burden of raising children in our society. In question period, the previous minister of immigration indicated that we needed to increase our immigration numbers because we have an aging demographic. When evidence suggests that perhaps we could encourage Canadians to have more children, the immigration minister's response was to pause and say that we have an aging demographic.

On May 18, the Association of Day Care Operators of Ontario stated that the Liberals' child care plan would result in uncertainty, limited access, the loss of jobs and the closure of many small businesses owned by women. The association also indicated that the Prime Minister knows that this Ottawa-knows-best government approach to child care takes away choice and would ensure that only publicly funded operators would survive, leaving behind small businesses, women and families.

Choice in child care is a high priority for many mothers and fathers, including the option of having family or friends care for their children, or participating in a co-operative. That is an excellent option in my hometown, where many people work at the potash mine and appreciate giving oversight to the care their children receive while they are at work. Under the current government's plan, there is no room for choice. It appears all working parents would be required to use a national government-run child care system as their only option to qualify for federal child care funding while participating in the workforce. Canada's Conservatives believe parents, not the government, know what is best for their children, and parents should have the choice in determining who will care for their children within their communities.

Once COVID no longer fills our news channels 24-7, and families unlearn all the apprehension, confusion and ever-changing recommendations and get back to normal life by working, playing, going to school and, yes, arranging child care, the Liberals' plan would add even more adversity and struggle for Canada's mothers, their children and women entrepreneurs. Why would that be? The Liberals' plan to kick-start our economy with a national day care program assumes partnership in their plan by the provinces. The finance minister claims the funding for the program would become a 50-50 arrangement with the provinces by 2025-2026, with a federal minimum commitment of $9.2 billion per year in ongoing investments in child care, including indigenous early learning and child care. To support this vision, budget 2021 proposes new investments totalling up to $30 billion over the next five years, or approximately $5 billion per year, and $8.3 billion going forward for early learning and child care and indigenous early learning and child care.

The PBO was quick to note that the provinces are at their limit right now and have no capability to buy into such a program. They do not have access to a printing press. Many of their economies were suffering extensively before COVID due to the same Liberal government creating such economic uncertainty that international and domestic investments were already packing up and leaving. A warning, from our national defence, of an ensuing pandemic was ignored. In a matter of weeks, families were thrown into complete chaos as employment declined, schools closed and child care that was previously available became very limited. The question is this: How feasible is the Liberal government's plan, based on its financial commitment as outlined in the 2021 budget?

Cardus is a highly respected independent think tank located here in Ottawa that has spent over 20 years studying the institutions, communities, beliefs, leaders and intricacies of civil society that collectively compose the social architecture of our common life. Its research focuses on education, family, health, religious freedom, social cities, work in economics and spirited citizenship.

In response to the announcement of a national day care initiative, Cardus recently released a report entitled, “Look Before You Leap: The Real Costs and Complexities of National Daycare”. The report studies the actual cost of providing the national day care system proposed by the government by comparing the policies advocated by proponents with the costs of delivering those policies.

The government claims that, by the end of the five-year time frame offered on child care in this budget, it would be contributing half of the child care costs for the provinces and territories, which would administer the programs. Cardus, on the other hand, finds the real annual and ongoing costs of national day care to be $36.3 billion. Since federal costs are fixed at $8.3 billion ongoing, this means that the provinces would need to cover the federal funding shortfall. Here are a few examples. The cost to Alberta would be $3.5 billion annually, to Manitoba $984 million, to Ontario $9.5 billion and to New Brunswick $336 million annually.

In her testimony to the finance committee, Andrea Mrozek, senior fellow of the Cardus family, commented that every morning she works taking care of her two-year-old and every afternoon she works for Cardus. She stated:

The federal government thinks that only one of these activities is worthy of federal support....[For] those whose primary concern is increasing GDP, only the waged work contributes, but child care is the care of a child, no matter who does it, and for the majority [of parents] there is little to gain and much to lose from plans for national day care.

Andrea has researched child care for 15 years and co-authored the report I mentioned previously. She went on to say:

Our detailed cost assessment phases in spaces for 70% of children under six, over five years, and includes staff, capital, training and maintenance costs. All of our assumptions are based on the work of advocates for national day care; however, there are several things they would desire that we were not able to include, making our estimates low.

Our low-quality and low-cost estimate rings in at $17 billion annually. The more reasonable estimate rings in at $36.3 billion annually.

She highlighted three concerns. Her first point was that the funding levels are woefully inadequate for a high-quality, universal program. This level of funding guarantees only low-quality care, inaccessible care or both. This program would not deliver what it promises.

Her second point was that because it funds only licensed not-for-profit care, most parents would experience a loss of care options, increased child care costs or both.

She then spoke to the per-family funding amounts that could be provided, and noted that this was money allocated to children, instead of to spaces. If the allocated federal funding of $9.2 billion annually was given to parents instead of to spaces, it would truly help with the difficulty of the high cost of child care. The per-child annual amount for children under six would be almost $4,000 annually. If the real costs of national day care were given to parents for each child under six, the per-child amount would be nearly $14,000 annually. She entered her testimony and stated that:

...with the idea that a family’s unpaid time with their child or children is not work, not valuable, or offers no “return.” I think this is a short-sighted, technocratic approach to child care that fails to address Canadian families’ wishes and needs. There are fortunately better and more equitable and more efficient ways to meet those needs, and simultaneously respect Canadian diversity.

I appreciate and support early childhood education and day care programs for those who want them and for those who are vulnerable. Single and low-income parents who need or want to work deserve to have quality day care spaces designed and available specifically for them, if that is the child care they choose. However, it is also true that for one parent, or a combination of both parents, raising their children during their early childhood years is a high calling and deserves recognition as a significant investment in our economy. Stay-at-home parents who choose to earn less during those youngest formative years, and parents who work from home or choose to work part time while taking care of their children, are investing directly in our most valuable and important resource: the next generation of Canadians. The first five years of a child's life is a crucial time for teaching personal beliefs, values and a sense of worth within the family unit, which is a foundational building block of a healthy society.

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Madam Speaker, I totally agree with the member that many parents choose to stay at home because that is their preference, and I think it is an incredible calling when someone specifically makes a decision to stay at home with their children, but the reality is that there are a lot of people out there who are doing it for economic reasons. They are doing it because it is more beneficial economically to stay home with their children than to put them in day care: At the end of the day, their income is quite often not much further ahead or is even behind if they have to put their children into day care.

Would the member not agree that when people want to pursue those opportunities in the labour force, or pursue entrepreneurial opportunities, they should have the resources to do that?