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

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

Madam Speaker, I believe the member meant to share her time with the member for Nepean.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

I thank the member. I was sidetracked there, and I am not sure if I heard her say that, but I will verify with her.

The hon. member for Saint-Laurent.

[Emmanuella Lambropoulos, Liberal, Saint-Laurent, QC]

Madam Speaker, if I did not say it, I definitely meant to say that I will be sharing my time with the member for Nepean.

However, it goes without saying that women who have this sort of arrangement and who stay at home may experience poverty as seniors, and many of them, as they are not financially independent and are financially dependent on their husbands, may not flee abusive relationships and situations, because they are unable to do so without any money. I am mentioning these points, because I am trying to prove the point that establishing a Canada-wide early learning and child care system actually tackles several societal issues that we face today.

Another thing in the budget that is very important to me is the enhanced Canada workers benefit. Our government introduced this benefit in the last budget, and budget 2021 will enhance this tax credit and make it more accessible to low-income workers and families earning income from employment or business.

Approximately one million more low-income Canadians will have access to this assistance.

The pandemic showed us just how essential low-income workers are for keeping our society running. They are working in our grocery stores, corner stores and pharmacies. They are working behind the scenes to provide small businesses with all the goods we purchased during this period, and they went to work every day so that those who stayed at home could have the essentials we needed to get through this pandemic.

The budget would allow the government to raise the income level at which the benefit starts being reduced to $22,944 for single individuals and $26,177 for families. For full-time workers, this could mean that a single, full-time, minimum wage worker could receive about $1,000 more in benefits than they would receive under the current system, and could continue to receive the benefit up to $32,000 of net income in 2021.

The enhancement to the workers benefit would benefit single workers without children the most, because they have limited access to other government supports that are made available to families, such as the Canada child benefit.

Currently, a full-time minimum wage employee is not eligible for the Canada workers benefit, however, under the new proposed system in budget 2021, they would be entitled to $1,100 with this number being subject to differ, depending on where they live and what the minimum wage is in their province.

I know many hard workers who will greatly benefit from this extra support, and I am happy we would move forward with this enhancement to the benefit when we implement this budget.

As a member of the Standing Committee on Industry, Science and Technology, I was thrilled to see the section of the budget concerning investments in COVID-19-related biomanufacturing. The budget proposes investing in Canada's biomanufacturing and life sciences sector in order to improve our capacity to develop and biomanufacture vaccines in Canada.

We now know that COVID-19 will be with us for some time to come. There are variants, and we do not know how long we will remain immune after we receive both doses of the vaccine. During the committee's study of domestic manufacturing capacity for a COVID-19 vaccine, witnesses told us that vaccine procurement is a short-term solution and that Canada must get ready to produce its own vaccines for Canadians in the long term. That is why I mentioned the need for this type of investment during the budget consultations held by the ministers responsible.

Budget 2021 will strengthen Canada's biomanufacturing and life sciences sector by providing a total of $2.2 billion over seven years towards growing a vibrant domestic life sciences sector. This support would provide foundational investments to help build Canada's talent pipeline and research systems, and support the growth of Canadian life science firms, including $59.2 million over three years starting 2021-22 for the Vaccine and Infectious Disease Organization to support the development of its vaccine candidates and expand the facility in Saskatoon.

The budget will invest in skills, training and trades and will help workers transition to new jobs. It proposes an investment of $250 million over three years to scale up proven third-party-delivered approaches to upskill and redeploy workers to meet the needs of growing industries.

The budget also contains measures to grow our net-zero economy and accelerate Canada's net-zero transformation through innovation. It allocates $5 billion for that.

I am proud of this budget. We are certainly heading in the right direction.

I hope that everybody can support it, so that we could get back to helping Canadians and so that we can improve our support to Canadians.

Thank you very much.

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

Madam Speaker, the member talked about how the budget protects workers and jobs.

In my riding, I have, for example, the Winnipeg Richardson International Airport and aviation manufacturing firms, like Boeing, Magellan and StandardAero. I have talked to many of the workers from the airport and these companies. They are struggling to just pay their mortgages. It is a very sad and devastating situation for the industry as a whole.

I am wondering if the member could comment on why there is no support for the aviation industry at all, including airports, in this budget.

[Emmanuella Lambropoulos, Liberal, Saint-Laurent, QC]

Madam Speaker, in my speech I was not able to touch on every subject, but the aerospace sector is definitely being helped in this budget. Specifically in my province of Quebec, a lot of the sector would be helped through this budget. That is another reason I am quite proud of what Minister Freeland has put forward in this budget.

I thank the member for giving me the opportunity to mention that. I had missed it due to time constraints.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

The hon. member mentioned the minister by name. I would caution her not to do so, as she knows the rules of the House.

We will continue with questions and comments.

The hon. member for Cowichan—Malahat—Langford.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Madam Speaker, it is great to see the Liberals supporting child care in this budget. It is something I ran on quite proudly back in 2015, and I agree with her that it would make a huge difference.

My question is regarding the Liberal standard for engaging with the provinces on these sorts of initiatives. This budget implementation act is setting up the legislative framework for the minister to engage with the provinces to get child care up and running.

However, when it came to Bill C-213, which was NDP legislation to set up a legislative framework for establishing a national pharmacare system, the Liberals voted against it. It seems as though the goal posts are shifting. Could the member clarify for the House what the Liberal standard is for engaging with provinces when trying to build up these national programs?

[Emmanuella Lambropoulos, Liberal, Saint-Laurent, QC]

Madam Speaker, this pandemic has really highlighted the need to support the most vulnerable, and many would argue, the most vulnerable in this pandemic have been young people and women. It was definitely time. People have been fighting for child care for many years, and I thank the member for his advocacy on this issue.

When things like this are highlighted during a pandemic or a time of crisis, I believe the federal government needs to work with the provinces in order to establish goals and come up with the right sorts of plans. Right now, the political will is there, and there is definitely a need, as we have all said, to support women and to make sure they are able to have equal access to the workforce.

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, I would like to speak on the investments made in this budget for artificial intelligence, quantum technology, photonics and genomics. More importantly, I would also like to speak on investments made in the critical minerals required for batteries, which are needed for use in everything from electrical vehicles to energy storage.

The global economy is moving toward a knowledge-based economy. One of the three objectives for me when entering politics a few years back was to work to ensure that Canadian society and the economy remained robust and competitive in the global knowledge-based economy, thus securing prosperity for our children and grandchildren.

Canada is prosperous today, and Canadians enjoy a very high standard of living due to the rich natural resources. We have oil. We have gas. We have minerals, and we have forestry products. All of which have provided for our prosperity so far. The natural advantage we have today may not be enough for us in a new global knowledge-based economy. To ensure that this prosperity is also available to our children and our grandchildren, we, as a country, need to be at the forefront of the new knowledge-based economy. Hence, investments in artificial intelligence, quantum technology, photonics, genomics, and the critical minerals required for batteries become very important.

Artificial intelligence is one of the greatest technological transformations of our age. It has already started making its impact. Many times we do not even know it is making an impact, but it is already there. Canada has communities of research, homegrown talent and a diverse ecosystem of start-ups and scale-ups.

I am glad that the budget would provide about $440 million in support of a pan-Canadian artificial intelligence strategy. More importantly, it would provide $185 million to support commercialization of artificial intelligence innovation and research in Canada. Investing in research, development and innovation is important, but for me, commercialization is also important. Both have to go hand in hand. We cannot continue to perpetually invest in research without all or part of that research being commercialized. Therefore, I am glad we are making investments in commercialization of artificial intelligence innovations.

Quantum technology is at the very leading edge of science and innovation today, and it has enormous potential for commercialization. This emerging field will transform how we develop and design everything from life-saving drugs to next-generation batteries. It also will provide a great deal of cybersecurity, which we hope to achieve and see soon. I am happy to state that this budget would provide about $360 million to launch a national quantum strategy. I am sure we will hear more details of this in the coming months.

Canada is a world leader in photonics, the technology of generating and harnessing the power of light. This is the science behind fibre optics, advanced semiconductors and other cutting-edge technologies, areas in which Ottawa has also got a great number of companies involved. There is a strong history of Canadian companies bringing this expertise to the world. I am pleased that the budget would provide $90 million to the National Research Council to retool and modernize the Canadian photonics fabrication centre.

Then, there is genomics. Genomics research is developing cutting-edge therapeutics and is helping Canada to track and fight COVID-19. Canada was an early mover in advancing genomic science and is now a global leader in this field.

I will give a cost comparison on how fast and how effective this particular technology is developing. The cost to sequence a genome has fallen by millions of dollars. I think in 2001, it cost us about $100 million to sequence a genome. From that, it came down to $1 million in 2008. It fell down to about $10,000 in 2012, and today it just costs a few hundred dollars. We can see how quickly it is changing and how effective it has become. Soon we will have tailor-made medicines available for genetic diseases.

The budget provides $400 million to support pan-Canadian genomic strategies. This includes support for mission-driven programming delivered by Genome Canada to kick-start the new strategy. In the new global knowledge-based economy, the world is flat. Canadians face equal competition from different parts of the world, and we do not have the advantages our natural resources used to give us.

The competition is coming from everywhere, especially for new technology professionals and new generations of Canadians in school today. The competition is from Sydney, Australia; Seoul, South Korea; Shanghai, China; Mumbai, India; and Frankfurt, Germany. All the world is flat, and we are facing a lot of competition from all over the world.

Immediately more important is the development of batteries. Many people may not recognize today, but this is also a national security issue. If we do not develop technologies, and if we do not develop batteries, one day we will be dependent on other countries for our energy security and transportation security. Things are changing very fast.

The trillion-dollar transportation market is quickly moving toward electrification. Major auto companies have already announced phasing out internal combustion engines and transitioning to battery-operated electric vehicles. Canada has rich reserves of the critical minerals needed for electric vehicle batteries and solar panels, along with the other low-carbon technology needed to reach net-zero.

Canada and the U.S. recently agreed to strengthen the Canada-U.S. joint action plan on critical minerals collaboration to target a net-zero industrial transformation, batteries for zero emissions vehicles and renewable energy storage. Investing in these critical resources is essential for our energy security and will ensure Canada is a vital producer in the supply chain of the future.

The budget provides funding to create a critical battery minerals centre of excellence at Natural Resources Canada. The centre would coordinate federal policy and programs on critical minerals and work with other partners too. The budget provides $37 million to Natural Resources Canada for federal research and development to advance critical battery mineral processing and refining expertise.

It is not just enough for us to be part of this operation. We need to have end-to-end capability to be in the battery business. To give an example of how far the cost of batteries has fallen in the last 10 to 12 years, the cost of lithium-ion batteries has fallen from $1,100 per kilowatt hour to just about $100. Soon it will reach much less, which will make the cost of electrical vehicles comparable with that of gasoline vehicles today.

Things are changing fast. Things are approaching fast where we will all move to electrical vehicles in the very near future. The companies have already announced changes and we need to be there.

[John Barlow, Conservative, Foothills, AB]

Madam Speaker, I want to thank my colleague for his intervention, but I do want to question one part of his speech where he mentioned that Canada has lost its competitive edge in our natural resource sector. I would have to agree with him, but I am agreeing with him because we have lost our advantage because of poor Liberal policies, which are focused on phasing out the oil sands.

As my colleague is talking about the centre of excellence to build electric batteries, what other components does he think will be necessary to build those batteries if we do not have a petrochemical industry? Where does he feel we are going to make up the shortfall of a lost $678 billion a decade in revenue for every level of government from the oil and gas industry?

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, just to clarify, what I meant to say is that the global economy is moving toward a knowledge-based economy and the transportation sector is moving toward electric vehicles. That is where Canada comes in. We have certain rare minerals that are required for the production of these batteries, and the investment we are making in Natural Resources Canada is to identify what minerals are required, how to develop them, how to refine them and how we can have a good, solid position in the supply chain that is required for the new generation of electric batteries.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Madam Speaker, I agree wholeheartedly with my colleague. The world centre right now for critical minerals is in my region: copper, cobalt, palladium and nickel. In terms of innovation, we had the deepest minds in the world at Laurentian University, in the mining engineering program. When Sudbury used to be a moonscape, we created and invested in environmental reclamation. The physics program had a Nobel Prize winner, yet this has been cut by the provincial government, completely hacked apart.

My hon. colleague is talking about innovation and investment. Will the government commit to working with us at Laurentian to maintain these programs of innovation and to build on this knowledge economy so that we can get these critical minerals into the new 21st century economy?

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, I fully agree with the need for the research and development of critical minerals all across Canada. We need to have a pan-Canadian approach. As the government has already stated, in certain advanced technologies, it is formulating pan-Canadian strategies to develop various important things that are needed for the knowledge-based economy.

As the centre of excellence for batteries is being set up, I am sure it will also develop a comprehensive strategy, to develop not just the mines and minerals, but also the technologies, and lead to the actual manufacturing of batteries in Canada. Even the U.S. has lagged behind. Today, there are about five major battery manufacturing projects in the U.S., each with over $2 billion in investments. This is changing fast and we need to move very fast. We are going in that direction.

[Jenica Atwin, Green, Fredericton, NB]

Madam Speaker, the member mentioned a lot about electrification, about solar panels and the way we want a low-carbon economy. What is his opinion on nuclear energy? Does that actually pose as a distraction for the direction we should be heading, which is in that renewable sector, in that electrification he is talking about?

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, I am not very knowledgeable on nuclear power generation, but what I am focusing on is the renewable power generation to help solar panels bring energy with the new energy storage system that is possible with the batteries today. All these renewable energy projects will become much more viable and contribute to the total power generation at a much greater scale than what it is today.