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

[Leah Gazan, NDP, Winnipeg Centre, MB]

Mr. Speaker, the budget had no line for investment in, for example, VIA Rail. We know Greyhound is in the tank. These are critical and vital transportation links, particularly for remote communities. Many seniors, for example, use the bus and rail.

I wonder if my colleague is supportive of making massive investments in VIA Rail and Greyhound?

[Gary Vidal, Conservative, Desnethé—Missinippi—Churchill River, SK]

Mr. Speaker, the Liberal government has consistently created policies and introduced provisions that divide Canadians, whether it be regionally or urban versus rural. Even today, there is much discussion about the division in categories of seniors. As somebody who represents a very northern riding, unlike my colleague asking the question, I very much understand the need for transportation for people in my riding.

If there is a lack of support for things that are important to my New Democratic colleague, why did she choose to support this budget in the first place?

[Brad Redekopp, Conservative, Saskatoon West, SK]

Mr. Speaker, not to give any secrets away, but I suspect my colleague is of a similar vintage as me. I remember when my first mortgage, for example, was 13%. The interest costs in this budget are admittedly quite low, and we are in a low interest rate time, but they will go up.

I would like the member's comments on the impacts of higher inflation and interest rates and whether there is significant risk to our country with the massive amounts of debt that has been brought on by the Liberal government.

[Gary Vidal, Conservative, Desnethé—Missinippi—Churchill River, SK]

Mr. Speaker, my colleague is the exact vintage as me, I am pretty certain, so we have very similar memories of our journeys in Saskatchewan.

I remember in the early 1980s when my dad was buying farmland and interest rates were 17% or 18% in a lot of cases. Just to put that in a really simple perspective, which is how I explain it to constituents, if we end up with a 1%, 2% or 3% increase in interest rates, the impact of that on the ability of government to support many of the programs it currently does would be significantly affected. For example, a 2% increase in interest rates is what is spent on national defence in a year. A 3% increase in interest rates is the amount of health transfers to the provinces every year. When we put it in terms like that and with interest rates rising 1%, 2% or 3% not being unrealistic, it would have a huge impact on our ability to support very important programs in our country.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, I am glad to have an opportunity to speak to the budget bill, because I have a lot of concern about the budget.

I will start with the amount of debt the government has added. The Prime Minister has added more debt to Canada than did all the prime ministers, together, since the beginning of Confederation. We are now at a debt of $1.3 trillion and the government has asked to raise the ceiling of that to $1.8 trillion.

People may wonder why that matters to me. The amount of debt that has been added to each Canadian is about $30,000. Let us think about this. That means for people who are watching, they will have to pay the government $250 a month every month for the next 10 years to pay off just what the government has spent so far. As we continue to spend, those numbers will go up. Let us think about in terms of a family. Partners and their children, everyone, will be paying $250 a month for 10 years. That is a lot of money.

There does not seem to be a plan. I asked the finance minister last night and she was unable to articulate a plan that would resolve this in the longer term. Nobody certainly expects an immediate adjustment, because we are trying to exit the pandemic, but where is the plan to exit the pandemic and restore the economy?

If we look at some of the substance in the budget, we will see that the Liberals have extended many of the programs that were put into place to help people during the pandemic, and that is great. The Conservatives always supported that. However, a lot of the programs had flaws and people were falling through the cracks. Those things were identified early on, even in April and May of last year. Therefore, I do not understand why the government has extended programs without fixing the things. Many people had start-up businesses. This was a clear area where folks who had unfortunately started up just prior to the pandemic or a few months in advance of the pandemic did not have the revenue to show for the previous year. If the government really wants to help people, why are these little holes in the programs not fixed?

It is the same situation for a lot of the women entrepreneurs. We have heard how disproportionately affected women were in the pandemic. We have seen the maternity leave issue. Women who were going to take maternity leave in the future but then had to stay home from work because of COVID were unable to get their maternity leave. The Liberals have not sorted that out in a whole year. The government knows about these issues and it needs to fix them. I do not understand why they were not fixed for the budget.

The member for Kingston and the Islands talked about the accusations that the Liberals were vote-buying and electioneering with this budget. It is hard not to think that is the case when we see money for everybody. Certainly, the Liberals will continue to give money away until they run out of the taxpayer money, and we are just about there.

I have looked at some of the promises in the budget. In particular, I want to talk about child care because that was flagged as a huge need. We have certainly heard that at the status of women committee which I chair. However, it is contingent on the provinces paying half. What if the provinces do not have the ability to pay? With the pandemic and the expenses they face, that may be the case. I asked the finance minister last night what the plan was if provinces could not afford to pay and she was not able to articulate a plan. It is very concerning when the person who is supposed to be in charge of the financial plan cannot say what it is.

We need to ensure that there is something to address the child care need because women have left the workforce and many of them will not return because they are unable to get child care.

In terms of some of the other things, this was put forward as being a growth budget. Again, last night when we looked at the estimates, I asked the finance minister about the plans for growth in the oil and gas sector and if she could point to measures that would achieve that. There was really nothing in the budget for that. It is the same for the natural resources sector. That is about 17% of our GDP. Again, there was really a blank space where there should have been some kind of a plan to grow that sector. This sector could really bring in revenue that would then pay for a lot of the social programs we are wanting.

I asked the same question about agriculture and where in the budget were the plans to spur growth in the agriculture sector. Again, there was no answer.

Therefore, this is not a growth budget. The only thing growing in this budget is the debt, and that is not what we need.

We really need to start to create jobs and get people back to work: the million jobs that were lost in the pandemic and those that will continue to be lost. We need to find help for the sectors that are struggling, and the tourism sector is well recognized as one that is struggling.

The government picked its favourite, Air Canada, and did something there, but nothing for WestJet, nothing for Air Transat and nothing for the other carriers. At the same time, the $1 billion for fairs and festivals is woefully inadequate for one of the hardest-hit sectors, which employs many people in the country. The plan needs to be realistic, and we need to appreciate that it could be a two-year recovery for the people in that sector.

At the same time, high-speed Internet is known to be a need across the country. In fact, it is essential to do business today. There is $1 billion in this budget for high-speed Internet, but I would point out that in the last few years $1.5 billion has been spent and that is a drop in the bucket compared to what is needed. This is something that the government is saying it wants to accelerate.

Again, in terms of the priorities of the spending, there are some things that I think we need to stop spending on and other things that we need to divert to and accelerate, like high-speed Internet.

I was happy to see long-term care being addressed, and certainly that is important. In the area of seniors, the increases to OAS that we have long been calling for are appreciated, for those over 75 years of age. We have seen that during this pandemic the government did two carbon tax increases, and the cost of everything is going up: food, groceries, etc. Seniors are on a fixed income in many cases and are very hard pressed. While the government is busy spending, why only the 75-plus? What about the people between 65 and 75? I should point out to the Liberals that those people do vote, so that could be a consideration for them.

The other thing I see here is a top-up for low-wage earners. To me, that looks like a basic guaranteed income that just was not called a basic guaranteed income.

Of course, in this long budget bill, the omnibus budget bill that the government always promised it would never do, the government has decided to sneak in something about the Elections Act, which has nothing whatsoever to do with the budget. What happened was that, in the last Parliament, Bill C-76, a bill to change the Elections Act, tried to introduce measures to make it an offence to say false things about a candidate or a public figure, but the court struck that down as being a violation of people's freedom of speech.

Instead of challenging the court's decision or respecting the court's decision, the government has decided to take the sneaky approach and stick it in a 720-page budget bill, and put the provision in there that this would take effect on any election that occurs within six months of the coming into force of this budget. Well, that certainly sounds like the Liberals are intending to have an election in the next six months, does it not? This is just more evidence that the Liberals are desperate to have an election and that they do not keep their promises, because this is an omnibus budget bill.

At the end of the day, when we look at the measures in the budget, what did we get for it? I have just a few questions that remain.

First of all, I do not see the plan to exit the pandemic. We thought maybe the vaccines would be it, even though that has been badly bungled. Now we are saying, “Well, you know what, even if you get the vaccine you might still be able to transmit COVID and might still be able to get it, so you are not going to get your freedoms back there.” I really do not have a lot of confidence that the government is going to give back Canadians' freedoms, and if it does, that it would restore the economy. Because there is no growth plan in this budget and there are no adequate sector supports defined, there may be nothing left to reopen to, if the government does not address this. The government has to come up with a plan to address the unsustainable debt. We cannot continue to operate in this way.

Finally, the government needs to stop the war on freedom of speech of Canadians in this country.

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

Mr. Speaker, I am glad that the member referenced the question that I had asked previously. However, I found it fascinating that in her follow-up response to my question on what this budget had promised, she said that it seems as though there is “money for everybody in here”, as though it is a bad thing to create a budget that strives to take care of all Canadians and make sure that everybody is reflected in it.

I will rephrase my previous question and put it to the member in a much simpler way: Whom would she like to see not being taken care of in this budget?

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, certainly the member opposite would know that the Conservatives have supported to assist people to get through the pandemic.

However, the government failed to close the borders adequately from the beginning, when it still allowed planes in from China, Iran and Iraq, and learned nothing from that. I was the shadow health minister. I read the pandemic plan. Border control is number one. The next thing we know, the variants came, but the government still allowed people in from the U.K and South Africa. Then the next wave came along, with India and Pakistan. Again, the borders were not closed. Then there was the bungling of the vaccines.

With all of these things, that is what is dragging out the pandemic recovery that is needed. People do not want a government handout. What they want is their jobs back and to get back to work, and that is what the government should be focused on.

[Monique Pauzé, Bloc, Repentigny, QC]

Mr. Speaker, I thank my colleague for her speech. Like many people, she is concerned about returning to a balanced budget. However, there are some in our society who are not paying their fair share. I am thinking of all those companies and people who send their money to tax havens.

Bill C-30 has some specific measures to deal with tax avoidance. The government is presenting them as a major effort to counter tax avoidance but, in reality, these measures are just highly specific, minor tweaks related to ongoing cases. What are the member's thoughts on the fight against tax havens?

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, I thank my colleague for the good question. It is very important for everyone to pay their fair share. I think that the Liberals do not have a good plan for recovering money from the wealthiest people.

When we look at the measures the Liberals have taken when they tried to raise taxes on the 1%, they actually got less tax revenue overall. That did not work out. They have done nothing that I can see to follow up on the paradise papers and the Panama papers and all the different lists of people who are definitely sheltering things offshore.

Clearly, rules exist but are not even being enforced. We probably need more stringent rules to prevent other people from hiding their money.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Mr. Speaker, I was delighted to hear my colleague speak about the importance of child care. I know she has worked very hard on supports for families and for women in particular. It plays an important role in that committee. She talked about the idea that a universal child care program is something that we need to make sure the provinces are onside with. She will know that Premier Kenney in my province has already said that he is not onside with it, despite the Royal Bank, chambers of commerce and all kinds of advocates saying that child care is probably the best way to get our economy back up and running.

In Alberta, we have not even spent the money in our budget for child care. What does the member think would be the solution to provinces that are not willing to put in child care for their populations, knowing that it is so important? I know she knows it is so important.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, what a great question that is from my colleague. It is a big fail for the Liberal government to announce that it is going to have this big child care thing without even checking with the provinces first, when it has made it contingent on the provinces participating. Clearly, this is just an empty promise, then.

What we ought to do is make sure that the federal government can do something that does not require the provinces necessarily to intervene. There are a number of different ways we can make child care more affordable. A lot of people who are paying for child care, if they could get all that money back, then not only have we made child care more affordable for them, but we also have all the people who are working in the child care sector who are paying taxes and all of the businesses associated with that. There is a revenue stream there.

I would argue that getting more women into the workforce and getting them all working is going to generate the revenue to offset having quality child care and having a variety of solutions that will work—

[The Deputy Speaker, Conservative, Bruce Stanton]

We can take just one more short question.

The hon. member for Prince Albert.

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Speaker, I know the member has been working tirelessly on Line 5 and the jobs in Sarnia. Did she see anything in this budget that would actually be there for the people of Sarnia in those jobs if Line 5 was to close?

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, that is a great question from my colleague, who works hard on the Canada-U.S. committee. There is nothing in this budget. In fact, not only is there nothing for oil and gas and for natural resources, but there is no contingency in this budget in case Line 5 does shut down. That will certainly drive the costs of everything up, including fuel that the government uses.

[Tim Uppal, Conservative, Edmonton Mill Woods, AB]

Mr. Speaker, as always, it is an honour to rise in this House on behalf of my constituents of Edmonton Mill Woods.

In the lead-up to this budget, the longest lead-up ever, as we went over two years without a budget, there were dozens of news stories and trial balloons talking about how innovative this budget was going to be. We heard time and again about how this budget would be a stepping stone for the Liberal government to build back better, whatever that means. Instead, at 739 pages and nearly a quarter of a million words, the longest budget in the history of our great country is also the greatest disappointment.

There is no plan to deal with inflation. There is no plan to make the dream of home ownership more attainable for Canadians. There is no plan to create new jobs and economic opportunities for families and young people across this country. Instead, we are left with a budget that says so much, proposes so little, and leaves Canadian jobs, productivity, and economic growth behind.

Let me start by looking at the full picture. In my riding of Edmonton Mill Woods and right across Canada, there are countless families and businesses on the brink of losing everything. The jobs numbers that came out earlier this month revealed that another 207,000 people across Canada had to come home and tell their family and loved ones one of the most difficult things to hear, that they had lost their job.

To be clear, Alberta’s economic problems didn’t just start because of this pandemic. The Liberals' Bill C-69, which many people called the “no more pipelines” bill; Bill C-48, the tanker ban; and general disregard for the energy sector have driven away billions of dollars of investment and, with it, thousands of Canadian jobs. The government has failed to produce a plan for one of Canada’s largest economic sectors, the energy sector.

There are some things in this budget that we and our Conservative team are in favour of. For so many Canadians who continue to struggle throughout this pandemic, the budget does have the extension of emergency programs that our Conservative team supports, measures like the wage subsidy, rent subsidy and other recovery benefits, but there are still issues that remain with some of these programs. My office has heard from so many Canadians. It has heard repeatedly from small businesses that opened just before the pandemic or during the pandemic, which have been left behind by these wage subsidy and rent subsidy programs. When asked about it, the Liberals continue to repeat what everybody already knows, that small businesses are the backbone of our community, yet they continue to do nothing to rectify this issue, leaving many small businesses, and the Canadians employed by them, behind.

One thing that I know would bring jobs to Alberta and to Canadians from coast to coast is pipelines. Our natural resources sector accounts for nearly two million jobs and nearly one-fifth of Canada’s GDP. There are mentions of pipelines in this budget. They talk about a vaccine pipeline, a talent pipeline, an innovation pipeline and a PPE pipeline, but no mention of a pipeline to carry our natural resources. Once again, the Liberal government continues to ignore our energy sector, which will be instrumental in our economic recovery coming out of this pandemic. Instead, we continue to import oil from the likes of Saudi Arabia and Venezuela, where there are much lower environmental standards and horrific human rights records. Talk about a failure.

Perhaps the biggest failure, and the focus of my speech today, is the government’s failure to take inflation seriously. Canada’s inflation rate in April was 0.6%, or roughly 7% on an annualized basis. For the average family in my riding of Edmonton Mill Woods, that means the inflation tax is going to take nearly $6,500 out of their pocket this year. This has been seen right across the board, as Canadian consumer prices are climbing at the fastest pace in a decade. The average family will pay nearly $700 more in groceries this year because of inflation. Everything from meat and vegetables to cereals and bread has increased by about 5%. Gas prices are continuing to increase dramatically. As Bloomberg reported last week, they have increased more than 60% in a year.

Perhaps the most explicit case I can make here is with lumber prices, which have increased by 300% over the last year. As Kevin Lee, the CEO of the Canadian Home Builders' Association, points out, this drastic rise in lumber costs will add tens of thousands of dollars to the average price of a home.

This leads me to another area of failure in this budget, which is the lack of any semblance of a plan to address overwhelming housing affordability issues in Canada, which has pushed the dream of home ownership further out of reach for far too many Canadians. Prices across Canada are skyrocketing, with young families who were saving for their first home at the beginning of this pandemic even further behind than when they started.

This has led to feelings of hopelessness. A poll from the Royal Bank of Canada released last month revealed that 36% of non-homeowners under the age of 40 have given up on ever buying a home and 62% of respondents said they expect the majority of people will be priced out of the market over the next decade.

What is the government doing to address this concern of people being left out of the market? The hallmark of this budget’s efforts on housing affordability is a 1% tax on foreign owners of vacant housing, which will simply be seen as a very minor inconvenience for wealthy foreign investors who have seen their investments appreciate by 42% this past year. This will not solve the problem at all. Instead, the current government should be focused on the root of the problem, which is the shortage of supply right across Canada.

As a recent Scotiabank report points out, Canada has the lowest number of housing units per capita of any G7 country. If Canada set the modest goal of simply catching up to the United States, Canadian builders would have to complete an extra 100,000 homes. To catch up to the U.K., it would require an extra 250,000 homes. To put these gaps in perspective, we have had an average of 188,000 home completions in the last 10 years.

I believe this serves as a perfect microcosm of the government’s philosophy. When it identifies a problem, it does not address the root cause. Instead, it takes a small reactive step, creates a new government agency or program for it, and then dumps millions, if not billions, into it.

The budget introduces another $101 billion in new spending, pushing our debt-to-GDP ratio to over 50% over the next few years. What are we getting out of this increased spending and debt? The budget predicts that the growth rate will slow steadily starting in 2022, all the way down to 1.7% growth in 2025.

As Robert Asselin, the former policy and budget director to Bill Morneau and policy advisor to the Prime Minister, said of this budget, “it is hard to find a coherent growth plan.... [S]pending close to a trillion dollars [and] not moving the needle on…growth would be the worst possible legacy of this budget.” While the budget is entitled, “A Recovery Plan for Jobs, Growth, and Resilience”, there seems to be much concern about whether or not it will deliver on jobs or growth.

The budget has no investments to address the structural problems that have plagued productivity and our ability to compete on the global stage. There is no plan to address the unprecedented level of investment that is fleeing Canada. There is no plan for regulatory and tax reform to help us win on the global stage. There is no comprehensive innovation strategy to ensure Canadian tech start-ups keep their job-creating investments here at home.

This budget is not meant for the growth of the economy. I believe Canadians are looking for hope that things will soon get better and they will still have a bright future to look forward to. They want their jobs and small businesses back. They want their lives and communities back. They want the hope of being able to afford a house. Simply put, they want to return to normal and live the Canadian dream.

This budget fails to deliver. There is no growth plan. It is not meant for the people of Edmonton Mill Woods, Alberta or our future generations. It is a failure. That is why we will not be supporting it.