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.

[The Chair, Liberal, Wayne Easter]

We will reconvene and call the meeting to order.

We welcome the second panel of witnesses to meeting number 47 of the House of Commons Standing Committee on Finance.

We are, as you well know, meeting on Bill C-30, an act to implement certain provisions of the budget tabled in Parliament on April 19, 2021, and other measures. I should call it the prestudy on Bill C-30, because it hasn't been referred to us as of yet.

With that, welcome, again, to all the witnesses. We will start with the Canadian Union of Public Employees.

If you could keep your remarks roughly to five minutes, we will have more time for questions. We'll start with Ms. MacEwen, senior economist, National Services, CUPE.

Welcome, Angella.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Thank you, Mr. Chair.

Let me come back to you, Mr. Céré. You were saying that the blind spots in division 36 of part 4 of Bill C-30 were taking us back to the status quo. Unless I'm mistaken, you mean this would be a return to the Axworthy reform of the 1990s, right?

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Thank you, Mr. Chair.

Good morning, everyone.

Thank you to the witnesses for being here and delivering presentations.

Mr. Chair, we just received the document you requested. I appreciate the witness providing it so quickly.

I want to start by clarifying something in connection with what Mr. Fragiskatos and Ms. Masotti were just talking about. Unless I'm mistaken, the majority of the House supported extending EI sickness benefits to 50 weeks. The Bloc Québécois put forward the motion, which was supported by the NDP and the Conservatives but opposed by the Liberals. Unfortunately, it's clear from the budget and Bill C-30 that the government disregarded the will of the House. I just wanted to provide that context.

My questions are for Mr. Céré.

Mr. Céré, thank you for being here and making your presentation. You cited the IMF, which cautioned the government against withdrawing income support programs too quickly. You made clear your concerns about divisions 35 and 36 of part 4 of the bill, in relation to a new iteration of EI, one that will come into force in September for a period of one year, as well as the CRB.

To my knowledge, the minister has the power, by regulation, to extend the CRB until November, but she cannot change the amounts, which would require a change to the act. You, of course recommended that we propose amendments to the bill. We will propose amendments, but they still have to be deemed in order by the chair. We will try to come up with appropriate wording.

I want to follow up on division 36 of part 4, which amends EI. For the one-year period from September 2021 to 2022, you identified two gaps, the variable divisor in calculating the benefit rate and the benefit period.

Could you elaborate on those gaps in the bill and tell us who will be affected?

[Ken Neumann, National Director for Canada, National Office, United Steelworkers]

Thank you very much, Mr. Chair.

Thanks as well to the clerk and the committee staff, the interpreters and the committee members for the opportunity to join you here today.

I am Ken Neumann, the national director for Canada for the United Steelworkers Union. Our union represents more than 825,000 workers in North America, including 225,000 workers in virtually every economic sector and region of Canada. I would like to add our voice to acknowledge the history that was made when Minister Freeland became the first woman to table a budget in Canada. It's well past due.

Another historic piece of this budget is the scope of the need people across Canada are facing. COVID-19 has hit and is still hitting people very hard. As a union, we are focused every day on fighting for our members, fighting to keep them safe and secure in their jobs. We also serve them by fighting to make Canada a stronger, fairer and more equitable place. By raising the bar for everyone, we can keep raising it even higher at the bargaining table. That's the lens we used to look at Bill C-30.

If you forget about pharmacare—because the Liberal government did—this big budget can look as though there is a little something here for almost everyone. That includes some important changes that improve labour standards, stop contract-flipping in airports, provide for a federal minimum wage and increase protection for some pensions. We are very happy to see changes that we were calling for. Of course, we're hopeful to see the promise of child care become a reality.

In between a lot of big spending, the government has failed to get some of the big things right. COVID-19 made major holes in programs such as employment insurance impossible to ignore. The changes that were brought in to fix EI during the pandemic, including creating a federal role in paid sick days, should be made permanent, not cancelled before COVID-19 is even behind us.

The budget barely scratches the surface of making the ultra-wealthy pay their share. While the government is slashing CRB supports by 40% from their CERB levels, they're doing nothing to claw back money from some big corporations that, in bad faith, took money through the wage subsidy program. By not going retroactive, the Liberals are letting big businesses that threw people out of work and handed big bonuses to bosses and shareholders off the hook.

The budget does include some good skills training and retraining programs, but too often it seems that protecting jobs was an afterthought. The government needs to connect the dots when it comes to creating a real industrial and job creation strategy. With a supply chain that brings materials and parts back and forth across the border, there are more workers involved in the auto industry than auto workers. In all the talk about zero-emission vehicles, there is no explicit strategy tied to that supply chain.

Obviously there is a lot of potential in the $15 billion promised for public transit, but where will the materials be sourced? As with other infrastructure announcements and commitments in this budget, there are no requirements to use domestically manufactured materials. There are no sustainability and emissions conditions either.

Knowing where our steel, aluminum and other products are from is crucial to the development of a North American approach to procurement and infrastructure, which is how we get an exemption to the buy America provisions. To that end, we are advocating for a North American “buy clean” strategy, which would prioritize the environmental impact of materials used in construction projects.

A recent buy clean report prepared by Blue Green Canada shows that steel, aluminum, cement and wood products produced here in Canada have some of the lowest carbon emissions in the entire world. This strategic approach would allow Canadians workers to benefit from President Biden's massive infrastructure, environment and jobs investment.

You have a partner with the United Steelworkers in working with the Biden administration to make that strategy a reality. From the carbon border adjustments to improving worker access to Canada’s trade remedy system, we look forward to consultations on border measures that are tied to clear procurement strategies that maintain and create jobs.

Before the budget was tabled, I said that it needed to support everyday people and help make sure that workers have jobs to support their families today and into the future. With some important changes, I believe it can be done. This budget tries in many ways to look like it is doing a lot towards that end.

Again, I thank you for the opportunity to be with you today, and George and I look forward to any questions that you may have.

[Pierre Céré, Spokesperson, National Council of Unemployed Workers]

Mr. Chair and members of the committee, good morning and thank you for inviting me.

The public health crisis we have been in since the spring of 2020 is coupled with an economic crisis, the likes of which we have not known in our lifetimes.

Last year alone, between mid-March and late September 2020—about seven months—nine million people lost their jobs. That is equivalent to 45% of the workforce. Those nine million people received the Canada emergency response benefit, or CERB, for an average of three months. The CERB was replaced by the Canada recovery benefit, or CRB. At the end of September, the government put the employment insurance, or EI, system back on track, introducing flexible measures that were practically akin to genuine program reforms. The measures are nevertheless temporary.

To gain a clear and unbiased understanding of the country's employment realities, we need only look to the EI numbers. From September 27, 2020 to May 9, 2021, a period of about seven months, 4.1 million EI claims were processed. Currently, 2.3 million people are receiving benefits. In terms of the CRB, if we take the three types of benefits into account, a total of 2.8 million people have received benefits since September 27 of last year.

In a recent study, the International Monetary Fund, or IMF, recommended that Canada “avoid a premature withdrawal of fiscal and monetary support” and highlighted that “the lessons from the crisis represent an excellent opportunity to review the EI system, including its role as an automatic stabilizer.” The IMF was right to say as much.

However, the objectives of the Budget Implementation Act, 2021, No. 1, are not entirely consistent with the IMF's position. Under division 35 of part 4, the measures to extend the CRB stipulate that, for the last eight weeks, or the new weeks after July 18, 2021, the amount of the benefit will be reduced to $300 a week, and at best, the September 25 cut-off date could be extended to November 20, 2021. Members of the Standing Committee on Finance, if it is within your power, I urge you to propose an amendment to the bill that would standardize the benefit amount at $500.

Division 36 of part 4 deals with EI and is clearly very complex. Some temporary measures will remain in place for a year, so 2021-22, but 2022 will mark a return to the status quo.

We welcome the temporary supports announced by the government, including measures to apply a single eligibility threshold of 420 hours to the entire country, to ensure penalties associated with separation from employment take into account only the most recent separation, to ensure that severance pay no longer has an impact on EI benefits, and to provide seasonal workers in 13 economic regions access to an additional five weeks of benefits.

However, the measures fail to address two areas. The first is the calculation of the benefit rate. The government is reverting to the status quo with a variable divisor determined by the unemployment rate. However, under the temporary measure currently in place, the divisor is 14 weeks. The second is the benefit period. Again, the government is reverting to the status quo with benefit periods that are too short. These gaps could have been avoided had the government renewed the temporary measures establishing the divisor at 14 and provided a universal benefit period of 50 weeks.

As a result of those gaps, the government is not helping regions in the same way. Some will actually be penalized, even though the entire country is feeling the effects of the pandemic.

Lastly, extending the duration of sickness benefits from 15 to 26 weeks is a historic and meaningful step, but why wait until next year? Why is it not being implemented until August 2022?

The government is delaying its plans to reform the EI system. So be it, but in the meantime, it should put temporary measures in place to provide the support people need. The government needs to act swiftly to close the gaps and remedy the shortcomings. Furthermore, it is imperative that the commission the government appoints to review the program and make recommendations, complete its work within a year, not two years.

Canada is the architect of great achievements on the world stage. The Universal Declaration of Human Rights is but one. Domestically, health insurance was a triumph for the country. The social safety net is critically important in responding to unemployment and crises, and the government must act accordingly.

On behalf of our organization, I urge the Standing Committee on Finance to bring forward solutions to the serious flaws in divisions 35 and 36 of part 4 of Bill C-30.

[Kelly Masotti]

Thank you, Mr. Chair and members of Parliament.

On behalf of the Canadian Cancer Society, thank you for the opportunity to appear before the committee today.

My name is Kelly Masotti. I'm the vice-president of advocacy. With me is Rob Cunningham, senior policy analyst, and Stephen Piazza, senior manager of advocacy.

In our testimony we would like to emphasize two provisions in Bill C-30 that we strongly support. These are an extension of the employment insurance sickness benefit from 15 to 26 weeks, as outlined in part 4, division 36, of the bill, and the increase in tobacco taxes, as outlined in part 3 of the bill.

Bill C-30 includes a much-needed commitment to the extension of the employment insurance sickness benefit to support people facing the financial burden that comes with a cancer diagnosis. The proposed extension from 15 to 26 weeks will have a very positive impact on people living with cancer, and we strongly encourage all MPs to support this important change.

When Canadians face cancer, their struggle is not just medical but also financial. In addition to a decrease in income, they also face a rise in expenses, such as for medications, medical travel, parking and home care costs. The stress of this financial burden affects their emotional well-being and therefore their psychosocial needs.

As Canadians live longer and have longer careers, more people are likely to develop an illness while in the workforce. With nearly one in two Canadians expected to develop cancer in their lifetime and more than one million Canadians living with and beyond cancer, there is a critical need to provide additional support.

This extension will have a major impact on the lives of those living with cancer. At 26 weeks, it will align with the compassionate care benefit for caregivers, which was extended in 2016.

National Ipsos polling data found that 88% of Canadians support extending the sickness benefit to 26 weeks, whether funded by employers or out of their own pocket. Similarly, 84% support an extension to 50 weeks.

It is estimated that 77% of sickness benefit claimants who exhaust the 15 weeks do not return to work immediately. About three-quarters of these claimants took at least an additional 26 weeks off work.

For the hundreds of thousands of Canadians living with cancer, financial burden and illness are a day-to-day reality. The issue has only been heightened as a result of COVID, and supports for those with cancer have never been needed more.

I will now turn things over to Rob regarding tobacco taxes.

[The Chair, Liberal, Wayne Easter]

I call the meeting to order.

Welcome to meeting number 47 of the House of Commons Standing Committee on Finance.

Pursuant to Standing Order 108(2) and the committee's motion adopted on Tuesday, April 27, the committee is meeting to study the subject matter of Bill C-30, an act to implement certain provisions of the budget tabled in Parliament on April 19, 2021, and other measures.

Today's meeting is taking place in a hybrid format, pursuant to the House order of January 25; therefore, members are attending in person in the room and remotely by using the Zoom application. The proceedings will be made available via the House of Commons website.

So that you're all aware, the program shows the person speaking rather than the full slate of witnesses and committee members. The camera is on only the one who is speaking.

That being said, welcome to all witnesses. I ask that witnesses try to hold their comments to about five minutes. That way, we'll have as much time as possible for questions.

We'll start with the Canadian Cancer Society. We have Kelly Masotti, vice-president, advocacy; Rob Cunningham, senior policy analyst; and Stephen Piazza, senior manager.

Who's on? Kelly, is it you?

[The Chair, Liberal, Wayne Easter]

I want to thank all the witnesses on this panel and previous panels today. We had a fairly extensive day with four panels.

Thank you to all the witnesses for your presentations, and for answering our questions on Bill C-30.

I am hearing quite a number of complaints from members about Zoom on their eyes, because we are on Zoom a long time, so if anybody has any magic solutions, whether it's eye drops or something else, let the rest of us know. I see Annie has the eye drops up there, but I know my own eyes are starting to get bothered by the amount of time we're on Zoom.

We'll look for magic solutions coming forward at the next meeting maybe.

With that, thank you to everyone. The meeting is adjourned.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

The situation that you're describing is no laughing matter. I appreciate the information. I understand that it will take more than the current content of Bill C-30 to support your industry, which contributes so much to the economy. Duly noted.

You also spoke about cyclical sectors. For example, you referred to festivals, for which there are tailored measures. The issue with festivals is that they generate most of their annual revenue in one or two weeks, if not in a few weeks. I gather that the support measures for these sectors should be extended until the companies or events generate their normal revenue. Is that right?

That's my last question.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Thank you.

I now want to talk about the income support measures for businesses in your industry included in Bill C-30. I'm thinking, of course, of the Canada emergency wage subsidy and the Canada emergency rent subsidy. In your presentation, you said that the measures included in Bill C-30 were insufficient, given the reality of your industry, which is largely based on seasonal activities and jobs. I gathered that the next step for the Canada emergency wage subsidy and the Canada emergency rent subsidy set out in Bill C-30 was insufficient. Is that what you said?

[Chris Aylward, National President, Public Service Alliance of Canada]

Thank you, Mr. Chair and members of the committee.

My name is Chris Aylward and I'm the national president of the Public Service Alliance of Canada. We represent 210,000 workers across Canada, most of whom work in the federal public service, but we also represent workers in the broader public sector and in the private sector.

Bill C-30 covers a lot of ground, as it should. These extraordinary times require extraordinary government intervention. The pandemic exposed many fault lines. Seniors became infected and many died in long-term care facilities because of numerous government policy failures. Low-wage workers, the majority of whom are women, Black, indigenous, Asian, racialized and people with disabilities, have suffered tragically and disproportionately because government policy has failed to address inequities embedded in every one of our systems. Now is the time to correct the mistakes of the past.

We welcome the promise of national standards for long-term care, although we regret that funding will be delayed until 2022. Despite its absence in the legislation, we hope the government will reconsider its efforts to improve long-term care by working to end the public sector pension plan's ownership of Revera Incorporated. Instead, let's put the second-largest Canadian network of for-profit long-term care facilities under public ownership and control. Revera is a wholly owned subsidiary of the Public Sector Pension Investment Board, which manages the investments of the pension plans of the federal public service, the Canadian Armed Forces, the Royal Canadian Mounted Police and the reserve force. PSAC made the call for a change in ownership of Revera as a result of mounting evidence that the incidence of death and illness attributable to COVID-19 is disproportionately large in private, for-profit long-term care facilities.

We are glad to see that workers will continue to see temporary support during the pandemic, but we also need far-reaching permanent improvements in income programs such as employment insurance. A federal minimum wage is a very good thing, but $15 an hour is still a low wage. Workers deserve a budget that creates conditions for decent jobs, paid sick leave and decent pay and benefits in every jurisdiction.

Also, the budget does not deliver the national pharmacare program that the government's own commission recommended. This will undoubtedly continue to create financial hardship and will lead to worse health outcomes for millions of Canadians. Nobody should choose between paying for critical medicine and paying for groceries, or have to skip prescription refills to pay the rent.

The transformative element of budget 2021 is the promise of a Canada-wide system of early learning and child care, backed by $30 billion over the next five years. Bill C-30 authorizes transfers to the provinces and territories of $2.9 billion in 2021-22, to be paid according to terms and conditions set out in bilateral agreements. PSAC started campaigning for federal action of this magnitude 40 years ago. Lowering parents' fees to an average of $10 a day while expanding the number of licensed child care spaces will bring down the obstacles stopping mothers from participating fully in the paid labour force. It will increase the social and economic security of women and will especially help those who now suffer the greatest inequity.

Furthermore, increasing women's access to paid employment will give the economy a huge boost now and in the future. The global pandemic has demonstrated this without question. When child care disappeared during multiple rounds of lockdowns and outbreaks, women were the ones most impacted and forced out of the workforce. The economic loss was immeasurable.

However, to realize these benefits, the federal government must use its $30 billion to negotiate meaningful changes in how child care is delivered. The economy needs a secure supply of publicly funded and managed child care. It should be predominantly not-for-profit or public. The quality must be high, and those who work in child care must be qualified and paid accordingly. The project is ambitious and expensive, but if done right it will pay for itself. We urge you to support it and hold the government to account for building the child care system Canada needs and wants.

Lastly, despite some gaps, we applaud the government's efforts to continue to work at increasing equity for all Canadians. We support the commitment to combatting systemic racism and anti-Black racism, both in the federal public service and across Canada.

We're encouraged by the funding dedicated to ensuring the rights of those living with disabilities, funding in support of the work of the LGBTQ2 secretariat and the development of an action plan, as well as continued funding to address long-standing issues in indigenous communities.

Mr. Chair, thank you for your time. I look forward to any questions.

Thank you.

[Kim G.C. Moody, Chief Executive Officer and Director, Canadian Tax Advisory, Moodys Tax Law LLP]

Thank you, Mr. Chair, and good afternoon committee members. Thank you for the opportunity to discuss Bill C-30.

As introduced, I'm Kim Moody. I'm a CPA and the CEO of Moodys Tax Law and Moodys Private Client in Calgary, Alberta, although I'm in snowy Edmonton today. I have a long history of serving the Canadian tax profession in a variety of leadership positions, including chair of the Canadian Tax Foundation, co-chair of the joint committee on taxation of the Canadian Bar Association and CPA Canada, and chair of the Society of Trust and Estate Practitioners, to name a few.

Given the limited time that we have this afternoon, I'm going to keep my opening remarks rather short and briefly comment on three matters: the size of the projected deficit; the length of the bill, which is 366 pages; and the amount of time it took to produce the federal budget.

Let's start with the projected size of the deficit.

While I'm not an economist, I feel compelled to comment on the size of the projected deficit as projected for the upcoming year. It will be an astounding $155 billion, after a record deficit of roughly $354 billion in the previous year. While proponents of modern monetary theory, MMT, may not have any concerns about such deficits, I think the more rational and reasonable person has issues with the size of the deficits and what the future implications of running such high deficits might be for our country. Count me and 74% of Canadians in the camp of those who are concerned, according to a recent poll conducted by Nanos for The Globe and Mail.

While some argue that current low interest rates make such deficits and lending possible, should inflation and interest rates increase, Canada can expect significant negative implications. In my view, control over the deficit, meaning reducing the size of the deficit, should be an immediate priority so as to reduce risk that future borrowing costs do not compromise essential government services.

Next, let me quickly comment on the length and content of the income tax measures contained in Bill C-30.

Some of the measures have been previously announced, such as the stock option measures, and are consolidated in this large bill. Some of the measures are welcome, such as the accelerated capital cost allowance deduction for certain depreciable capital property. Some of the measures are unwelcome, such as the amendments to the absolutely horrible Canadian journalism tax credit regime. Other measures are technical amendments, such as the amendments to enable the conversion of health and welfare trusts to the employee health and life trust regime. All told, there are 30 income tax measures in the bill, which is not an insignificant number of amendments, and they're all packed into a 366-page document.

With such a massive bill, I query whether any parliamentarian can realistically understand every proposed amendment and intelligently comment, and thus vote, on its contents. In my view, to intelligently understand a bill, such measures should be broken up into bite-sized pieces in order to accommodate proper understanding and passing of laws. Having said that, I do appreciate that the business of government needs to proceed for the benefit of Canadians.

This leads to my third and final comment. March 19, 2019, was the last time, prior to April 19, 2021, that the federal government released a budget. That's a record, as we all know, and our government used COVID as the excuse for not releasing a plan. As I've stated at this committee before, former parliamentary budget officer Kevin Page said in October 2020, budgets “are fiscal plans. And to say that, ‘because there’s too much uncertainty, we’re going to manage without a plan’, is kind of bizarre.... The reason we have plans is because there is uncertainty.”

I absolutely agree. In this day and age of uncertainty, prudent fiscal budgets and plans are needed. After reading the 700-plus pages in the 2021 budget, it's difficult to see a prudent plan other than massive spending. Canadians deserve more than just a massive spending budget. They expect timely and well-thought-out budgets accompanied by intelligent plans that encompass possible shock factors such as high interest rates and inflation increases.

Never again should Canadians need to wait two-plus years for a budget. In fact, it would be my recommendation to make the timely delivery of a budget a law. Fixed budget days should also be considered.

Finally, as many presenters have told you in the past, this country needs comprehensive tax review and reform. Your committee has recommended this very thing and so has the Senate finance committee. Perhaps there is something to all the smart people who have appeared before this committee. Rather than wading through a 366-page bill with 30 income tax amendments, Canadians expect and demand real and comprehensive change.

Forget the cries for patchwork quilt fixes like those contained in this bill. In my opinion, it is critical for our country's fiscal future to engage in comprehensive tax review and reform. The time could not be better.

Thank you.

[The Chair, Liberal, Wayne Easter]

We will reconvene the meeting.

Thank you, Pat Kelly, for chairing the last session.

Welcome to meeting number 46 of the House of Commons Standing Committee on Finance. We are meeting on Bill C-30, an act to implement certain provisions of the budget tabled in Parliament on April 19, 2021 and other measures, and we're meeting in the hybrid format.

With that, we will go to our first witness. If you could keep your comments to around five minutes it would leave plenty of time for questions. We'll start with Nancy Wilson, founder and chief executive officer of the Canadian Women's Chamber of Commerce.

Ms. Wilson, you're on. I believe you've been here before as well.

[The Vice-Chair, Conservative, Pat Kelly]

I will call this meeting to order.

Welcome to meeting number 46 of the House of Commons Standing Committee on Finance. Pursuant to Standing Order 108(2) and the committee's motion adopted on Tuesday, April 27, 2021, the committee is meeting to study the subject matter of Bill C-30, an act to implement certain provisions of the budget tabled in Parliament on April 19, 2021 and other measures.

Today's meeting is taking place in a hybrid format, pursuant to the House order of January 25, 2021. Therefore, members are attending in person and remotely by using the Zoom application.

The proceedings will be made available via the House of Commons website. The webcast will always show the person speaking, rather than the entirety of the committee. I'd like to take this opportunity to remind all participants of this meeting that taking screenshots or taking photos of your screen is not permitted. Interpretation services are available to all members. Just remember to ensure that your interpretation setting is set to the correct language when you are speaking.

I see that we have at least one guest member today. I want to welcome Mr. Fisher, who is substituting for Mr. Fraser.

With that, I will welcome our witnesses. Today we have Simon Telles, lawyer for Force Jeunesse. We have Susie Grynol, president and chief executive officer of the Hotel Association of Canada. We are expecting Alanna Hnatiw, mayor of Sturgeon County. Hopefully we will be able to connect with her and get her onto the call.

In the meantime, let's get under way and have opening statements from our witnesses. After that, we'll go to questions.

With that, go ahead, Mr. Telles.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Thank you, Mr. Chair.

I will start with a comment.

I just want to remind our guests that, in my opinion, all members of the committee agree with increasing interprovincial trade. Just because we did not support the idea of the committee doing a study, does not mean that we are against trade of that kind. In my opinion, the issue is the negotiations that have to take place among the provinces. Canada is a federation. It's a historical compromise. Although we are seeing more and more pressure for everything to be decided in Ottawa, the fact remains that we have various levels of administration and not everything is up to “big daddy” in Ottawa.

For example, in Bill C-30, I especially regret the funding for centralizing securities. That is detrimental to Quebec's economy and to its head offices, because it threatens their financial position. The Bloc Québécois clearly cannot support that idea.

My questions go to Mr. Poloz once more.

Mr. Poloz, the extent of the crisis and the responses by governments and central banks, which have implemented measures all around the world, are enough to make one's head spin. Some plans are unprecedented and they seem to be working. However, the sums involved are really high and I understand perfectly the fears about inflation, or deflation, as you said in a previous life.

We also have to be afraid of bubbles in some sectors, especially real estate. We are therefore looking at all the risks to determine what could happen, given that we are losing our reference points a little.

Which sectors, which risks, could lead to the recession becoming longer, or even to a new recession? I talked about inflation and deflation. We could also talk about exchange rates. You mentioned a K-shaped recovery.

In your opinion, could the sectors that recover more slowly represent a risk in terms of a recession becoming longer, or of a new crisis?

Should we actually be assessing the risks in terms of climate change?

Which risks should we be closely monitoring in order to prevent another crisis or an extension of the one we are currently in?