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.

[Nicolas Moreau]

They can. Basically, there's a process with the Bank of Canada. They need to validate that they are the owner of this account. They need to provide the information that the Bank of Canada will ask for.

That said, it takes a lot of time to make that validation, because the Bank of Canada doesn't have the social insurance number. They also don't have the date of birth of this individual. They need to rely on past transactions in the account. They need to rely also on this individual validating the last time they made a transaction in this account. It takes a lot of time to make the link between the owner and the person who is claiming this account.

The changes to the law that we're requesting in Bill C-30 would really expedite everything. They would force the financial institution to communicate the social insurance number to the Bank of Canada, as well as other information that will really help to make this transfer in the future.

[Nicolas Moreau, Director General, Funds Management Division, Financial Sector Policy Branch, Department of Finance]

Mr. Chair, I'm Nicolas Moreau from the Department of Finance. I'm the director general of the funds management division. I'll take care of division 2 with my colleague Kathleen Wrye from the pensions section.

I'll provide you with a brief overview of the changes that we're requiring here, and I'll be happy to take your questions after.

I will speak in French as there are interpreters.

Sections 140 to 150 of division 2 of part 4 deal with the modernization of the unclaimed amounts program and seeks to bring legislative changes to increase the efficiency of the program and also allow Canadians to recover amounts that they had lost or forgotten.

Unclaimed amounts are assets that were deposited in accounts with federally regulated financial institutions that are inactive for 10 years. After 10 years of inactivity, the assets are transferred to the Bank of Canada, which holds all unclaimed assets that were initially deposited with federally regulated banks and trust or loan companies.

The new clause proposes legislative amendments to improve and expand the unclaimed amounts program. Division 2 of part 4 of Bill C-30 contains amendments to the Bank of Canada Act giving the Bank of Canada the explicit authorization to publish information online about unclaimed assets.

The Pension Benefits Standard Act, 1985 would also be changed in order to provide a legislative framework for federally regulated pension plans. This framework would, under certain conditions, allow balances of unclaimed pensions to be transferred to a designated entity who could request that the balance be paid out.

Lastly, the Bank Act and the Trust Company Act would also be amended in order to expand the definition of unclaimed assets, which would henceforth include foreign currency deposits and assets, and would obligate financial institutions to inform the account holders via electronic means, such as by email, as well as by post, and to contact the Bank of Canada to provide more information, including the date of birth and the social insurance number of the account holder, which would make claim validation easier.

This brings me to the end of my description of division 2 of part 4 of Bill C-30.

[The Chair, Liberal, Wayne Easter]

We will call this meeting to order.

Welcome to meeting number 43 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, 2021. Therefore, members are attending in person in the room and remotely using the Zoom application. The proceedings will be made available via the House of Commons website. The website will show the person speaking rather than the entirety of the committee. We ask folks not to take photographs of the screen, or screenshots.

With that, in this panel we are dealing with part 4, divisions 1, 2, 3, 4, 8 and 9.

We have eight officials from the Department of Finance: Jean-François Girard, senior director, financial stability and capital markets; Julie Trepanier, director, payments policy, financial systems division; Nicolas Moreau, director general, funds management division; Kathleen Wrye, acting director, pensions policy, financial systems division; Erin O'Brien, director general, financial services division; Manuel Dussault, senior director, financial institutions division; Richard Bilodeau, director general, financial institutions division; and Neil Mackinnon, senior adviser, financial crimes governance and operations.

To the witnesses, thank you very much for coming. We appreciate your efforts in this new and somewhat complicated era that we find ourselves in.

We will start with part 4—

[Trevor McGowan, Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance]

Thank you, Chair.

Owing to the time, and my understanding that a package of summary materials has been provided to the committee, I'll provide a brief overview instead of going through each of the measures in the bill, unless you would like me to do so.

Part 1 of Bill C-30 deals with the Income Tax Act and amendments related to it. It contains measures that were either announced or confirmed in the 2021 federal budget. The confirmed or previously announced measures include some from budget 2019 and some others that had already been announced but were referenced in the budget.

These would include, for example, an increase to the basic personal amount that essentially provides a tax-free amount for Canadians, gradually reduced for higher-income earners; extensions to various COVID-related subsidies, such as the Canada emergency wage subsidy and the rent subsidy; the introduction of a new hiring program; and the enhancement of the Canada workers benefit, a program that provides assistance to lower-income workers.

With that, we would be happy to take any questions you might have on part 1, or provide a more thorough overview, as I said at the opening.

[The Chair, Liberal, Wayne Easter]

Thank you.

Compared with our previous schedule, which had several meetings next week for three hours, we will not meet on Wednesday, May 19. We will meet on Monday for six hours, and then on the 17th, 18th, 20th and 21st.

Is there any discussion?

(Motion agreed to [See Minutes of Proceedings])

Then we will go to witnesses.

We're dealing with Bill C-30, parts 1, 2 and 3.

I'll go through the list of witnesses so that they're on the record, and we'll go from there.

We have Trevor McGowan, director general, tax legislation division, tax policy branch; Dave Beaulne, senior director, tax legislation division; Maude Lavoie, director general, business income tax division; Pierre Leblanc, director general, personal income tax division; Pierre Mercille, director general, sales tax legislation; Phil King, director general, sales tax division; François Beaulieu, expert adviser, sales tax division; Dominic DiFruscio, senior adviser, sales tax division; and Warren Light, expert adviser, sales tax division.

Just to committee members, I know members sent me a list for a regular lineup on questions. What we typically do on the budget implementation act—and if you have a concern about it, raise it—is that, rather than going through the five or six minute rounds, we just take, in order, whoever has questions on whatever division we're dealing with.

In part 1(a), if you have a question, I'll recognize you, and we'll take one supplementary. Then we'll go to the next questioner, and then we'll go to part 1(b).

If there are no problems with that, we will start.

On part 1, I believe it is Mr. Trevor McGowan.

Welcome.

[The Chair, Liberal, Wayne Easter]

I will call the meeting to order.

Welcome to meeting number 42 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 of this year and other measures.

I will forgo the other formalities, because everybody who's on this line has been through this enough times that we don't need to do that.

First of all, let me apologize to all the witnesses who came on time. We were dealing with a subcommittee meeting. I'll now go into the motion that came from it to see where the full committee stands, and then we'll go to witnesses.

As I said to members at the subcommittee, if I have part of this wrong don't be afraid to correct me. The motion that we passed at subcommittee, which we'll look for a vote on at full committee, is this:

That the committee continue its study of Bill C-30, the Budget Implementation Act, by:

1. Inviting witnesses to appear on the contents of Bill C-30 during meetings scheduled the week of May 17, 2021, and that;

a. Members of the Committee submit their prioritized witness lists for the study of Bill C-30 to the Clerk of the Committee by no later than Friday, May 14, 2021, at 6 p.m.—

That's a little bit of a change from the motion that's before you.

—and that these lists be distributed to members of the committee as soon as possible;

2. Moving to clause by clause review of Bill C-30 no later than Thursday, May 27, 2021, at 3:30 p.m., and that;

a. amendments be submitted to the Clerk of the Committee in both official languages no later than 12:00 p.m. (noon) on Tuesday, May 25, 2021;

b. the Clerk of the Committee write immediately to each Member....

That's the same. Part (b) is the same on the motion that's before you, and part 3 is the same on the motion before you. We've agreed that the finance committee will do three meetings on tax evasion, following the conclusion of the study on Bill C-30, and following that, the steering committee would meet as soon as possible to plan future business.

That's the motion. Is someone willing to move it? It's moved by Peter Julian.

Is there any discussion?

Mr. Clerk, what did I miss?

Émilie Sansfaçon Act

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Madam Speaker, I am very pleased to rise in support of this bill. It actually looks a lot like my own private member's bill, Bill C-212, which effectively seeks to do the same thing.

It is in the spirit of an amendment that I tried to move to one of the government's most recent bills modifying the Employment Insurance Act for the purposes of the pandemic, where I sought to have the EI sickness benefit extended to 50 weeks. It is in the spirit of a motion that has already passed, not once but twice, in the House of Commons during this Parliament that calls for an extension of the EI sickness benefit to 50 weeks. Frankly, it is high time that this got done.

I have to say I have not found the government's response to this proposal compelling in the least. The previous intervention by the member for Winnipeg North, just two speakers ago, illustrated the inadequacy of the government's response. He talked about EI as a program meant to maintain an attachment to the workforce. That is true, but there already other EI benefits that can extend up to 50 weeks.

It makes no sense at all to say that, because somebody is sick, they should not be able to maintain an attachment to their job and go back to work after an adequate recovery period, and continue to receive some benefit during that whole period. I do not see how sickness is a good way to choose people who would not get the length of benefit that they might otherwise receive under a normal EI stream.

The member then talked about some other general features of EI that have been changed throughout the course of the pandemic, but did not really speak again to the issue of sickness benefits.

The question that the bill really puts to the fore, and rightly so, is for people who are sick, how are we going to do right by them. Even prior to the pandemic, there had been a campaign towards 50 weeks going on for far too long already, with governments that refuse to act and to implement a 50-week EI sickness benefit.

We knew, already, that in terms of typical recovery periods for diseases like cancer, 15 weeks is simply not enough. However, the pandemic has put this question into even sharper relief. COVID-19 has led to the development of a condition that some people are calling long COVID, post-COVID syndrome or COVID long-haulers. These are people who are seriously falling through the cracks.

They are falling through the cracks for a number of reasons. In some cases, it is that they contracted COVID before the robust testing regime was in place, so they do not have a formal diagnosis of COVID. In some cases, their workplace insurance plan for things like short-term disability does not recognize long COVID as a condition, so they cannot get coverage.

One of the programs that has been there for these folks in their time of need and as we learn more about this new condition that is afflicting them is the EI sickness benefit, but that is only for 15 weeks. We heard from people some time ago who were already at the expiration of their EI sick benefits and unable to access any other kind of insurance program.

Without naming names, out of concern for folks' privacy, I do want to read some excerpts of the stories that have been sent to me by people who are struggling with long COVID, who I think really make the case for why it is so important that we make our EI sickness benefit a much longer benefit.

One woman who wrote to me said:

My symptoms started on April 2, 2020. In the weeks and months that followed, I have suffered and continue to suffer with multiple symptoms that affect my ability to function on a daily basis. I used my short-term sick credits available through my employer until October 2020. At that point my long-term disability through a third party insurance company should have started, but my claim was denied. I am currently going through the appeal process, which could take many months. I am receiving EI sick benefits, but when those end I will have no income.

Another woman from Quebec says, “Please help. I got COVID in March 2020. I've been sick since. I'm coughing uncontrollably and because of the cough, I can't resume my job working on the phone or any other job. Even going to the store I get stared at. I just exhausted my EI sickness benefits and I have nothing else available to me. I'll be sick and homeless. Fifteen weeks is just not enough to recover. I want to work but my doctor said that I'll end up being fired because of this cough.”

Another woman writes, “I am emailing on behalf of my 25-year-old child. They contracted COVID-19 at work at the end of May 2020 and have not been able to work since. They were eligible for CERB and received it until the end of September. They have been receiving the EI benefit since then, but are becoming concerned about what will happen if they continue to be unable to work when their benefits run out.”

A woman from Ontario wrote, “My husband and I are both COVID long-haulers and are about to lose our home because of lack of government financial support. As a result of my insurance company denying my long-term disability claim, I've had to rely on employment insurance sickness benefits, but the 15 weeks of benefits to which I'm eligible are almost up and I'll soon find myself without any income whatsoever. Though I filed a lawsuit against my insurer, it could take up to two years for my case to be resolved.”

There are more, I am sorry to say. We have heard from so many people who really had no other resort in the pandemic than the EI sickness benefit. Despite the fact that there have been many changes made to the EI program on a very quick basis throughout the pandemic, as yet no changes have been made.

I know the government committed to extending the benefit to 26 weeks in the campaign, but those have not surfaced in any of the legislative changes over the past year. They finally appear in Bill C-30, but what I cannot understand is why the government would choose to go with only 26 weeks, when we have an excellent bill like the one before us today. We have clearly demonstrated the will of the House of Commons to support a 50-week benefit.

When I tried to amend a previous government bill, Bill C-24, to include a 50-week benefit, one of the arguments, which I did not find compelling, made by folks on the government side was that making changes to the software that undergirds the EI system was very difficult and it was not just a matter of putting in a number of weeks in the system. It is very complicated, according to them.

If this is supposed to be a once-in-a-generation change to the EI sickness benefit, it would be a tragedy if it ended up only being for 26 weeks. Future governments are going to make that same argument that we cannot expand the number of weeks because the software does not support it. If this is the moment to make that change, and the government is clearly signalling a willingness to make that change, even though it was not willing a couple of months ago on Bill C-24, then let us get it right the first time.

There is an expression on job sites that there is never enough time to do the job right the first time, but there is always enough time to redo it three times after. The problem with this is that we are not slapping up a storefront here. People are sick now and their EI sickness benefits have already expired. People with that benefit, on the cusp of expiring, are going to suffer while the government struggles to get this right. The way is clear. The House of Commons has already said categorically that it should be a 50-week benefit. We have had opportunities with amendments that I have moved previously. We have another opportunity with this bill today.

This has already taken too long. Let us get this right the first time and do right by all those people who are out there suffering, either with new conditions like long COVID, or with long-standing conditions who have struggled to get their health needs met during the pandemic because our hospitals have rightly been focused on helping all those whose lives have been jeopardized by COVID-19. Let us ensure that sick Canadians have the financial support they need to get through these challenging times.

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

Madam Speaker, I appreciate the opportunity to address Bill C-265. I would like to draw a comparison. There is no doubt that there are members on all sides of the House who are very concerned about workers and want to do what we can in order to support them, whether they are currently in the workforce or they find themselves in a situation where they are disabled temporarily or even long term.

Bill C-265 is an attempt to address an issue. Having said that, there are a couple of concerns. One would be in regard to the scope of the legislation. Is it going beyond the scope of what was intended? Bill C-265 recognizes the scope of the EI programs in terms of their objectives, which are quite simple. It is there to help keep workers connected to the labour force.

Members will find that a majority of the workers who end up taking leave beyond 26 weeks do not return to work. In many ways, we need to look at other programs. The government recognizes the need to support Canadian workers who find themselves out of the labour market, either long term or permanently due to disability, and does this through the program that Canadians will be very familiar with, the Canada pension plan disability benefits. The EI program really is not meant to provide that avenue of coverage.

There are concerns regarding the bill we have before us. I would ask members to take a look at what is being proposed by the government, particularly through Bill C-30. The minister has done an excellent job in understanding the importance of making changes to benefit workers in Canada. We have seen that through some temporary measures that have taken place because of the pandemic. When the pandemic hit, we made sickness benefits a priority.

We introduced a number of temporary changes to the EI program in order to support Canadians during this difficult time over the last number of months. Some of those temporary measures were to facilitate access and increase the generosity of EI benefits, including EI sickness benefits, just to cite a few of them. This allowed Canadians to qualify for EI with only 120 insurable hours. I think that was a very well-received initiative by the government.

There was a need, and the government responded by implementing a minimum benefit rate of $500 a week. This particular change had a very positive impact, much like we had through the CERB program with that minimum amount of money. We saw how Canadians benefited in all regions of the country. I thought it was very encouraging when we heard there would be a minimum benefit rate, which was established at $500 per week.

There were also temporary measures to provide access to up to 50 weeks of regular benefits and the freezing of the EI premium rate at the 2020 rate for two years. I see those as very strong, positive actions that were necessary. The minister and the civil servants responded quite quickly in terms of making sure that injured and disabled workers were being seriously looked at and supported during the pandemic.

Bill C-30 has some things within it that I would recommend the House seriously look at. There are many reasons to support Bill C-30: After all, it is our budget bill and a wide variety of things affect so many Canadians. I would encourage members to support this legislation.

There are some specifics about workers. For example, budget 2021 contains commitments to modernize the EI program for the 21st century. It announces consultations on future long-term reforms to EI. Many times, we have seen private members' bills, resolutions and a wide spectrum of other types of debates hit the floor of the House of Commons that talk about EI and how important the program is, and how important it is that we look at ways in which we can make modifications to it that benefit workers.

For years in opposition, I wanted to see some changes to it. With the 2015 election results and the change in government, I was very happy that, for the first time, I had some sense that the government was going to be acting on worker-related legislation that would be more favourable to workers. Many of my Liberal colleagues have wanted to see changes to EI. The announcement of extending or allowing for consultations on future long-term reforms will do us and the people of Canada quite well into the future because of the spectrum of issues we face today. They were not necessarily prioritized in previous years. Extending EI sickness benefits to 26 weeks is a component of that reform.

Budget 2021 is a more balanced approach than the private member's bill that we have before us today. I would encourage members to look at it. In particular, we are seeing the extension of EI sickness benefits. They are a very important component of any reform.

I highlighted some other areas. When we think of sickness benefits, what are they and what do they currently provide? Sickness benefits provide short-term income support and help maintain workers' labour market attachment while they are temporarily unable to work due to a short-term illness, injury or quarantine, which is most appropriate at this time.

The EI sickness benefit would provide up to 15 weeks of temporary income support at an amount equal to 55% of an individual's average weekly insurable earnings, up to a maximum weekly amount. The commitment to increase EI sickness benefits in budget 2021 would also increase the maximum number of sickness benefit weeks available, from 15 to 26. If passed, the bill would provide $3 billion over five years starting in 2021-22 and an ongoing $967 million per year to do just that.

This extension would take effect in the summer of 2022. I would encourage members to look at the benefits to the workers in the budget that the Minister of Finance has brought forward and support it.

[The Chair, Liberal, Wayne Easter]

Thank you. I think everybody is of the same opinion.

Thank you very much, folks. You're released.

Turning to committee members, Sean has sent a motion through the clerk, but I'll just make this statement. We have eight meetings lined up, starting in the week of the 17th. We have eight meetings lined up based on the earlier subcommittee agreement and motion.

On the motion that Sean has put out, whether we deal with it or not, we certainly need to make a decision on witness deadlines. The motion is saying that it's noon on Thursday, May 13. With eight meetings, we're going to need a lot of witnesses. We will have officials here and we'll get the chance to question them again.

The clerk will need time. What makes it more complicated, as well, is that the clerk has to try to send out these headsets so that the translation can work. That's one quite serious problem.

The motion doesn't mention farming this out to other committees. I've talked to other committees. In the system, there just isn't time available. The only committee that has time booked on the so-called break week is HUMA. There are 10 divisions in the budget implementation act that apply to them, if we want to farm that out to them.

We have to make some decisions on whether we want to deal with the motion as is or leave it to the next meeting. I don't know, but we definitely have to do something on a deadline on witnesses and priority lists in order to be ready to roll next week, because it's going to be a busy week.

I'll wait until I get participants up here on my Zoom screen. I'm not sure who was the first in.

We have Peter Julian, Pat Kelly and Sean Fraser.

Go ahead, Peter.

[Evelyn Dancey]

I was pausing to see if my colleague, Mr. Marsland, wanted to reply as well, but perhaps we can share in our response if we have different things to say.

There are actually new or enhanced program announcements for Budget 2021 that will be available to new businesses or those that have been launched since the beginning of the pandemic.

With respect to my area at Finance of economic development, there is the Canada digital adoption program to support the acquisition of technology to help the digitization of business. There is the expansion of the Canada small business financing program, which includes a number of elements that are included in Bill C-30 for further detail, but both expands the range of assets that can be financed as well as the different types of financing available.

There also has been an expansion of the government's suite of entrepreneurship measures for women entrepreneurs, Black entrepreneurs, and other equity-deserving entrepreneurs.

[Andrew Marsland]

With respect to the first question, I think it's important to understand what the proposed digital services tax is about and what it's not about. It's not about taxing consumption in Canada. As you know, Bill C-30 includes measures to require the collection of GST by non-residents who are providing certain services.

What the proposed digital services tax is about in a corporate taxation context is making sure that where value is created in Canada, it's subject to tax. The value that's created—which is novel in the digital environment—is essentially the monetization of user data, meaning the data we all provide when we participate in social media, search engines, and so on. That data is often monetized and that value is created in Canada, and it's appropriate that it be taxed.

That's what it's about. There is no exclusion for any particular enterprise. There is a scope proposed for the tax, and that scope would not normally include the sale per se of goods or services. It may include situations where there is data harvested through that activity. That may be within the scope of the proposed tax.

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

Thank you.

If you happen to come across more specific information, it would be appreciated if you could send it to the committee. Thank you again.

I want to follow up on something I was asking the minister about.

I'm referring to division 8 of part 4 of Bill C-30, which enacts the Retail Payment Activities Act. Can you confirm for me that nothing in the act will make it possible for Amazon, Walmart or other tech giants to provide services currently offered by financial institutions?

Budget Implementation Act, 2021, No. 1

[Blaine Calkins, Conservative, Red Deer—Lacombe, AB]

Mr. Speaker, it is a pleasure to be in the chamber today to speak to Bill C-30, the Liberals' budget implementation act. It has been more than two years since the government has tabled a budget, and the expectations of Canadians were high. With all the platitudes, like “build back better”, the government had increased expectation and set the stage for something that we were led to believe would be momentous. Unfortunately, the Liberals once again fell back to their default setting of over-promising, overspending and underachieving. Plain and simple, this budget is a letdown for the hard-working Albertans in my riding of Red Deer—Lacombe.

It is reasonable that a number of essential COVID-19 support programs that many Canadians rely on are being extended. This is only fair considering they are necessary because of the failings and mismanagement of the pandemic by the Liberals in the first place. However, while Americans are able to attend stadium sport events and mass gatherings because of a successful vaccination and therapeutic drug strategy, Albertans have just been placed under the most stringent public health measures so far. The Liberals' failure to procure an adequate number of vaccines is devastating, not only to those who will undoubtedly get COVID, but to all Canadians who are being forced to sacrifice more for longer than our friends and families in other countries.

The budget completely fails to lay the road map for how the Liberals plan to get out of the pandemic and get back to life as we once knew it. That is job number one right now, and it was missed entirely in this budget. It is clear that the Liberals have no plan to get back to normal. Instead, they came up with creative solutions to try and mask their failure by trying to compare Canada's first-dose vaccination rate, with our four-month gap between doses, with those of our G20 partners, which are following the manufacturers' instructions on timelines for administering the second dose. Maybe that should not be surprising. After all, this is a government that is well practised at spin, starting with its ethically challenged Prime Minister.

The Liberals' failure to prevent variants of concern from entering Canada and their failure in acquiring vaccines are not just health related. The longer it takes for us to begin the post-COVID recovery, the further we will fall behind.

While the Liberals may be spending money like it grows on trees, which is easy to do when one is printing money to offset spending, the reality is that only the private sector can lead us out of the pandemic, and private sector investment is going to flow to the jurisdictions that welcome it. Unfortunately, with so much uncertainty about when we will be on the other side of the pandemic and with a budget that does nothing meaningful to cut red tape or improve the business climate in this country, Canada is not and will not be prepared for the necessary private sector investments.

The Deputy Prime Minister and Minister of Finance has made it clear that the government sees the current quagmire of misery that Canadians are living in as a window of political opportunity. This budget shows us exactly what kind of opportunity the Liberals are seeking: an opportunity to shore up their political fortunes for re-election. This budget is full of unnecessary, unproductive spending and electioneering that the government is trying to disguise as stimulus.

The Minister of Finance promised that they would spend up to $100 billion in stimulus, but only if it was necessary. With many economists speaking out and telling us that stimulus spending of that magnitude was not necessary, I was hopeful that the Liberals would pull in the reins on their spending spree. However, when it comes to the government, the devil is always in the details.

We know that the full $100 billion has been allocated even though the Parliamentary Budget Officer has made it clear that a significant portion of it is not actually stimulus at all. I guess no one told the Minister of Finance that if she does not need the whole $100 billion in stimulus, she should not spend it, because it is borrowed money. It certainly does not mean the government should spend the rest supporting political or ideological goals instead of economic ones.

The Prime Minister is set to rack up more debt than every prime minister preceding him. The real issue is that the Liberal government does not even seem to see this as a problem. Time after time we see the government brag about the size of the investment instead of the quality of the return on the investment. That is the problem when a government is all talk and no substance. The Liberals value the press releases more than the result reports, and they clearly plan to continue this trend with budget 2021.

The Liberals promised that they were going to build back better. Well, for central Albertans, this is a plan that will ensure that we build back poorer, as sectors of the economy that Albertans rely on have been largely ignored in this budget, if not outright attacked.

Small businesses that are a critical part of our economy and our communities have been let down. While some much-needed pandemic relief programs were extended and loans remain on offer to those able to shoulder even more government-forced debt, the lack of certainty is crippling. Last year, 60,000 small businesses failed and another nearly 200,000 are in danger of closing now. Small businesses in the tourism sector have been especially devastated.

A single mom in my riding who has been a self-employed travel agent for 30 years recently had to go out and start looking for a new career. This is in large part because the government did not ensure any safeguards for small, independent business people when they were dealing with the airlines. Their commissions are now being clawed back by airlines for services rendered months or even years ago.

In 2020, countless community events were cancelled because of COVID-19, events that our communities rely on to bring in tourists. Many of these community events are once again faced with a fast-approaching deadline to decide what 2021 is going to look like for their events and their businesses.

My riding is home to the Ponoka Stampede, Canada's largest seven-day rodeo. Losing an event like the Ponoka Stampede is not just a loss for the competitors or spectators. It is a loss to the community and surrounding areas, which would otherwise benefit from the event. The estimated economic impact for the local area is $150 million every year. That is a lot of money anywhere, but especially in a rural community like Ponoka with a population of just 7,200 people.

We are getting to a point where organizers need to make these tough decisions again, but the government has not given them the certainty they need to make them. We can see how that ripples across the community. Just last year in Red Deer, the Black Knight Inn closed its doors after running successfully for nearly 45 years.

Guides and outfitters are another part of the tourism sector that have been left behind by the government. With many businesses getting 90% or more of their clients from the United States or other foreign countries, times have been tough for the industry, causing spinoff problems related to food security for local communities and wildlife management. These businesses have lost nearly all of their clients and have no way or ability to pivot to clients from the domestic market.

The budget implementation act has no mention of the tourism relief fund committed to in the budget, which many of these businesses could certainly use. We would expect that a fund geared toward helping businesses adapt their services to public health measures and start to recover would be implemented right away. While funding for Destination Canada could have been helpful in promoting our world-class hunting and fishing opportunities to other Canadians, the government quietly stopped letting lodges access the fund for this purpose a number of years ago.

The agriculture sector was also essentially forgotten. Throughout the pandemic, it has become routine for the government to point to the original set of business risk management programs, which were in need of a overhaul long before the pandemic, as somehow now a solution to the problem. The proposal to refund a portion of the carbon tax on natural gas and propane for vital activities like grain drying is a pittance of what farmers pay to run them. Hopefully, we can get this corrected through the private member's bill of my colleague from Northumberland—Peterborough South, which would remove the carbon tax from a broader list of farm fuels. The Liberals, I might add, recently voted against it at second reading.

When it comes to the oil and gas sector, there was literally no support whatsoever. In fact, we can see the next step shaping up in the Prime Minister's plan to phase out the oil and gas sector entirely, through the proposed changes that ensure several types of fossil fuel powered energy equipment are no longer eligible for accelerated capital cost allowance deductions. In other words, the Liberals are driving away investment.

When it comes to Alberta's energy sector, the budget is also ensuring that the modest money that is being committed for carbon capture is not eligible to companies that perform enhanced oil recovery. During past challenging economic times, Canada's energy sector has been able to be an integral and central part of our recovery.

Instead of working to empower our world-class oil and gas sector, which abides by the strictest environmental standards in the world, the government prefers to increase the pace with which they are mothballing this industry. They work to end the Canadian industry and ironically welcome oil from places like Venezuela and Saudi Arabia, which lack our commitment to environmental standards and human rights.

This budget is extremely frustrating to my constituents. A recent survey in Alberta by ThinkHQ Public Affairs suggested central Albertans are more likely to report a negative financial impact from the pandemic. It is about 57% in the place I call home compared with 46% for the provincial average. With these realities, we would think that if the government is going to spend money to stimulate our economy, it would ensure that industries important to local economies in places like central Alberta are included.

I do not know what would matter to the government. It simply does not seem to care about the needs of central Albertans. I look forward to the day when a Conservative government once again takes care of the needs of all Canadians.

[Monique Pauzé, Bloc, Repentigny, QC]

Mr. Speaker, I thank the member for Dauphin—Swan River—Neepawa for his speech.

Bill C-30 increases the envelope for the Canadian Securities Transition Office, which was one of the Harper government's pet projects.

The member spoke at length about SMEs in his speech. In Quebec, SMEs, the financial sector, labour-sponsored funds and political parties are against this bill.

Can the member explain why the parties in power in Ottawa listen to the Bay Street banks more than they do Quebec?

[Michael McLeod, Liberal, Northwest Territories, NT]

Thank you, Mr. Chair.

Thank you to the minister for joining us.

I want to ask the minister the following question. When it comes to fiscal flexibility, the Government of Canada has significantly more capacity than its provincial-territorial and municipal counterparts. This is certainly the case in the area I come from, the Northwest Territories. How will the measures in Bill C-30 help ensure that these other orders of government are able to provide the services and infrastructure that their residents rely on?