Budget Implementation Act, 2022, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures

Sponsor

Status

This bill has received Royal Assent and is, or will soon become, law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

Part 1 implements certain income tax measures by
(a) providing a Labour Mobility Deduction for the temporary relocation of tradespeople to a work location;
(b) allowing for the immediate expensing of eligible property by certain Canadian businesses;
(c) allowing the Children’s Special Allowance to be paid in respect of a child who is maintained by an Indigenous governing body and providing consistent tax treatment of kinship care providers and foster parents receiving financial assistance from an Indigenous governing body and those receiving such assistance from a provincial government;
(d) doubling the allowable qualifying expense limit under the Home Accessibility Tax Credit;
(e) expanding the criteria for the mental functions impairment eligibility as well as the life-sustaining therapy category eligibility for the Disability Tax Credit;
(f) providing clarity in respect of the determination of the one-time additional payment under the GST/HST tax credit for the period 2019-2020;
(g) changing the delivery of Climate Action Incentive payments from a refundable credit claimed annually to a credit that is paid quarterly;
(h) temporarily extending the period for incurring eligible expenses and other deadlines under film or video production tax credits;
(i) providing a tax incentive for specified zero-emission technology manufacturing activities;
(j) providing the Canada Revenue Agency (CRA) the discretion to accept late applications for the Canada Emergency Wage Subsidy, the Canada Emergency Rent Subsidy and the Canada Recovery Hiring Program;
(k) including postdoctoral fellowship income in the definition of “earned income” for RRSP purposes;
(l) enabling registered charities to enter into charitable partnerships with organizations other than qualified donees under certain conditions;
(m) allowing automatic and immediate revocation of the registration of an organization as a charity where that organization is listed as a terrorist entity under the Criminal Code ;
(n) enabling the CRA to use taxpayer information to assist in the collection of Canada Emergency Business Account loans; and
(o) expanding capital cost allowance deductions to include new clean energy equipment.
It also makes related and consequential amendments to the Excise Tax Act , the Children’s Special Allowances Act , the Excise Act, 2001 , the Income Tax Regulations and the Children’s Special Allowance Regulations .
Part 2 implements certain Goods and Services Tax/Harmonized Sales Tax (GST/HST) measures by
(a) ensuring that all assignment sales in respect of newly constructed or substantially renovated residential housing are taxable supplies for GST/HST purposes; and
(b) extending eligibility for the expanded hospital rebate to health care services supplied by charities or non-profit organizations with the active involvement of, or on the recommendation of, either a physician or a nurse practitioner, irrespective of their geographic location.
Part 3 amends the Excise Act, 2001 , the Excise Act and other related texts in order to implement three measures.
Division 1 of Part 3 implements a new federal excise duty framework for vaping products by, among other things,
(a) requiring that manufacturers of vaping products obtain a vaping licence from the CRA;
(b) requiring that all vaping products that are removed from the premises of a vaping licensee to be entered into the Canadian market for retail sale be affixed with an excise stamp;
(c) imposing excise duties on vaping products to be paid by vaping product licensees;
(d) providing for administration and enforcement rules related to the excise duty framework on vaping products;
(e) providing the Governor in Council with authority to provide for an additional excise duty in respect of provinces and territories that enter into a coordinated vaping product taxation agreement with Canada; and
(f) making related amendments to other legislative texts, including to allow for a coordinated federal/provincial-territorial vaping product taxation system and to ensure that the excise duty framework applies properly to imported vaping products.
Division 2 of Part 3 amends the excise duty exemption under the Excise Act, 2001 for wine produced in Canada and composed wholly of agricultural or plant product grown in Canada.
Division 3 of Part 3 amends the Excise Act to eliminate excise duty for beer containing no more than 0.5% alcohol by volume.
Part 4 enacts the Select Luxury Items Tax Act . That Act creates a new taxation regime for domestic sales, and importations into Canada, of certain new motor vehicles and aircraft priced over $100,000 and certain new boats priced over $250,000. It provides that the tax applies if the total price or value of the subject select luxury item at the time of sale or importation exceeds the relevant price threshold. It provides that the tax is to be calculated at the lesser of 10% of the total price of the item and 20% of the total price of the item that exceeds the relevant price threshold. To promote compliance with the new taxation regime, that Act includes modern elements of administration and enforcement aligned with those found in other taxation statutes. Finally, this Part also makes related and consequential amendments to other texts to ensure proper implementation of the new tax and to ensure a cohesive and efficient administration by the CRA.
Division 1 of Part 5 retroactively renders a provision of the contract that is set out in the schedule to An Act respecting the Canadian Pacific Railway , chapter 1 of the Statutes of Canada, 1881, to be of no force or effect. It retroactively extinguishes any obligations and liabilities of Her Majesty in right of Canada and any rights and privileges of the Canadian Pacific Railway Company arising out of or acquired under that provision.
Division 2 of Part 5 amends the Nisga’a Final Agreement Act to give force of law to the entire Nisga’a Nation Taxation Agreement during the period that that Taxation Agreement is, by its terms, in force.
Division 3 of Part 5 repeals the Safe Drinking Water for First Nations Act .
It also amends the Income Tax Act to exempt from taxation under that Act any income earned by the Safe Drinking Water Trust in accordance with the Settlement Agreement entered into on September 15, 2021 relating to long-term drinking water quality for impacted First Nations.
Division 4 of Part 5 authorizes payments to be made out of the Consolidated Revenue Fund for the purpose of addressing transit shortfalls and needs and improving housing supply and affordability.
Division 5 of Part 5 amends the Canada Deposit Insurance Corporation Act by adding the President and Chief Executive Officer of the Canada Deposit Insurance Corporation and one other member to that Corporation’s Board of Directors.
Division 6 of Part 5 amends the Federal-Provincial Fiscal Arrangements Act to authorize additional payments to the provinces and territories.
Division 7 of Part 5 amends the Borrowing Authority Act to, among other things, count previously excluded borrowings made in the spring of 2021 in the calculation of the maximum amount that may be borrowed. It also amends the Financial Administration Act to change certain reporting requirements in relation to amounts borrowed under orders made under paragraph 46.1(c) of that Act.
Division 8 of Part 5 amends the Pension Benefits Standards Act, 1985 to, among other things, permit the establishment of a solvency reserve account in the pension fund of certain defined benefit plans and require the establishment of governance policies for all pension plans.
Division 9 of Part 5 amends the Special Import Measures Act to, among other things,
(a) provide that assessments of injury are to take into account impacts on workers;
(b) require the Canadian International Trade Tribunal to make inquiries with respect to massive importations when it is acting under section 42 of that Act;
(c) require that Tribunal to initiate expiry reviews of certain orders and findings;
(d) modify the deadline for notifying the government of the country of export of properly documented complaints;
(e) modify the criteria for imposing duties in cases of massive importations;
(f) modify the criteria for initiating anti-circumvention investigations; and
(g) remove the requirement that, in order to find circumvention, the principal cause of the change in a pattern of trade must be the imposition of anti-dumping or countervailing duties.
It also amends the Canadian International Trade Tribunal Act to provide that trade unions may, with the support of domestic producers, file global safeguard complaints.
Division 10 of Part 5 amends the Trust and Loan Companies Act and the Insurance Companies Act to, among other things, modernize corporate governance communications of financial institutions.
Division 11 of Part 5 amends the Insurance Companies Act to permit property and casualty companies and marine companies to not include the value of certain debt obligations when calculating their borrowing limit.
Division 12 of Part 5 enacts the Prohibition on the Purchase of Residential Property by Non-Canadians Act . The Act prohibits the purchase of residential property in Canada by non-Canadians unless they are exempted by the Act or its regulations or the purchase is made in certain circumstances specified in the regulations.
Division 13 of Part 5 amends the Parliament of Canada Act and makes consequential and related amendments to other Acts to, among other things,
(a) change the additional annual allowances that are paid to senators who occupy certain positions so that the government’s representatives and the Opposition in the Senate are eligible for the allowances for five positions each and the three other recognized parties or parliamentary groups in the Senate with the greatest number of members are eligible for the allowances for four positions each;
(b) provide that the Leader of the Government in the Senate or Government Representative in the Senate, the Leader of the Opposition in the Senate and the Leader or Facilitator of every other recognized party or parliamentary group in the Senate are to be consulted on the appointment of certain officers and agents of Parliament; and
(c) provide that the Leader of the Government in the Senate or Government Representative in the Senate, the Leader of the Opposition in the Senate and the Leader or Facilitator of every other recognized party or parliamentary group in the Senate may change the membership of the Standing Senate Committee on Internal Economy, Budgets and Administration.
Division 14 of Part 5 amends the Financial Administration Act in order to, among other things, allow the Treasury Board to provide certain services to certain entities.
Division 15 of Part 5 amends the Competition Act to enhance the Commissioner of Competition’s investigative powers, criminalize wage fixing and related agreements, increase maximum fines and administrative monetary penalties, clarify that incomplete price disclosure is a false or misleading representation, expand the definition of anti-competitive conduct, allow private access to the Competition Tribunal to remedy an abuse of dominance and improve the effectiveness of the merger notification requirements and other provisions.
Division 16 of Part 5 amends the Copyright Act to extend certain terms of copyright protection, including the general term, from 50 to 70 years after the life of the author and, in doing so, implements one of Canada’s obligations under the Canada–United States–Mexico Agreement.
Division 17 of Part 5 amends the College of Patent Agents and Trademark Agents Act to, among other things,
(a) ensure that the College has sufficient independence and flexibility to exercise its corporate functions;
(b) provide statutory immunity to certain persons involved in the regulatory activities of the College; and
(c) grant powers to the Registrar and Investigations Committee that will allow for improved efficiency in the complaints and discipline process.
Division 18 of Part 5 enacts the Civil Lunar Gateway Agreement Implementation Act to implement Canada’s obligations under the Memorandum of Understanding between the Government of Canada and the Government of the United States of America concerning Cooperation on the Civil Lunar Gateway. It provides for powers to protect confidential information provided under the Memorandum. It also makes related amendments to the Criminal Code to extend its application to activities related to the Lunar Gateway and to the Government Employees Compensation Act to address the cross-waiver of liability set out in the Memorandum.
Division 19 of Part 5 amends the Corrections and Conditional Release Act to restrict the use of detention in dry cells to cases where the institutional head has reasonable grounds to believe that an inmate has ingested contraband or that contraband is being carried in the inmate’s rectum.
Division 20 of Part 5 amends the Customs Act in order to authorize its administration and enforcement by electronic means and to provide that the importer of record of goods is jointly and severally, or solidarily, liable to pay duties on the goods under section 17 of that Act with the importer or person authorized to account for the goods, as the case may be, and the owner of the goods.
Division 21 of Part 5 amends the Criminal Code to create an offence of wilfully promoting antisemitism by condoning, denying or downplaying the Holocaust through statements communicated other than in private conversation.
Division 22 of Part 5 amends the Judges Act , the Federal Courts Act , the Tax Court of Canada Act and certain other acts to, among other things,
(a) implement the Government of Canada’s response to the report of the sixth Judicial Compensation and Benefits Commission regarding salaries and benefits and to create the office of supernumerary prothonotary of the Federal Court;
(b) increase the number of judges for certain superior courts and include the new offices of Associate Chief Justice of the Court of Queen’s Bench of New Brunswick and Associate Chief Justice of the Court of Queen’s Bench for Saskatchewan;
(c) create the offices of prothonotary and supernumerary prothonotary of the Tax Court of Canada; and
(d) replace the term “prothonotary” with “associate judge”.
Division 23 of Part 5 amends the Immigration and Refugee Protection Act to, among other things,
(a) authorize the Minister of Citizenship and Immigration to give instructions establishing categories of foreign nationals for the purposes of determining to whom an invitation to make an application for permanent residence is to be issued, as well as instructions setting out the economic goal that that Minister seeks to support in establishing the category;
(b) prevent an officer from issuing a visa or other document to a foreign national invited in respect of an established category if the foreign national is not in fact eligible to be a member of that category;
(c) require that the annual report to Parliament on the operation of that Act include a description of any instructions that establish a category of foreign nationals, the economic goal sought to be supported in establishing the category and the number of foreign nationals invited to make an application for permanent residence in respect of the category; and
(d) authorize that Minister to give instructions respecting the class of permanent residents in respect of which a foreign national must apply after being issued an invitation, if the foreign national is eligible to be a member of more than one class.
Division 24 of Part 5 amends the Old Age Security Act to correct a cross-reference in that Act to the Budget Implementation Act, 2021, No. 1 .
Division 25 of Part 5
(a) amends the Canada Emergency Response Benefit Act to set out the consequences that apply in respect of a worker who received, for a four-week period, an income support payment and who received, for any week during the four-week period, any benefit, allowance or money referred to in subparagraph 6(1)(b)(ii) or (iii) of that Act;
(b) amends the Canada Emergency Student Benefit Act to set out the consequences that apply in respect of a student who received, for a four-week period, a Canada emergency student benefit and who received, for any week during the four-week period, any benefit, allowance or money referred to in subparagraph 6(1)(b)(ii) or (iii) of that Act; and
(c) amends the Employment Insurance Act to set out the consequences that apply in respect of a claimant who received, for any week, an employment insurance emergency response benefit and who received, for that week, any payment or benefit referred to in paragraph 153.9(2)(c) or (d) of that Act.
Division 26 of Part 5 amends the Employment Insurance Act to, among other things,
(a) replace employment benefits and support measures set out in Part II of that Act with employment support measures that are intended to help insured participants and other workers — including workers in groups underrepresented in the labour market — to obtain and keep employment; and
(b) allow the Canada Employment Insurance Commission to enter into agreements to provide for the payment of contributions to organizations for the costs of measures that they implement and that are consistent with the purpose and guidelines set out in Part II of that Act.
It also makes a consequential amendment to the Income Tax Act .
Division 27 of Part 5 amends the Employment Insurance Act to specify the maximum number of weeks for which benefits may be paid in a benefit period to certain seasonal workers and to extend, until October 28, 2023, the increase in the maximum number of weeks for which those benefits may be paid. It also amends the Budget Implementation Act, 2021, No. 1 to add a transitional measure in relation to amendments to the Employment Insurance Regulations that are found in that Act.
Division 28 of Part 5 amends the Canada Pension Plan to make corrections respecting
(a) the calculation of the minimum qualifying period and the contributory period for the purposes of the post-retirement disability benefit;
(b) the determination of values for contributors who have periods excluded from their contributory periods by reason of disability; and
(c) the attribution of amounts for contributors who have periods excluded from their contributory periods because they were family allowance recipients.
Division 29 of Part 5 amends An Act to amend the Criminal Code and the Canada Labour Code to, among other things,
(a) shorten the period before which an employee begins to earn one day of medical leave of absence with pay per month;
(b) standardize the conditions related to the requirement to provide a medical certificate following a medical leave of absence, regardless of whether the leave is paid or unpaid;
(c) authorize the Governor in Council to make regulations in certain circumstances, including to modify certain provisions respecting medical leave of absence with pay;
(d) ensure that, for the purposes of medical leave of absence, an employee who changes employers due to the lease or transfer of a work, undertaking or business or due to a contract being awarded through a retendering process is deemed to be continuously employed with one employer; and
(e) provide that the provisions relating to medical leave of absence come into force no later than December 1, 2022.
Division 30 of Part 5 amends the Canada Business Corporations Act to, among other things,
(a) require certain corporations to send to the Director appointed under that Act information on individuals with significant control on an annual basis or when a change occurs;
(b) allow that Director to provide all or part of that information to an investigative body, the Financial Transactions and Reports Analysis Centre of Canada or any prescribed entity; and
(c) clarify that, for the purposes of subsection 21.1(7) of that Act, it is the securities of a corporation, not the corporation itself, that are listed and posted for trading on a designated stock exchange.
Division 31 of Part 5 amends the Special Economic Measures Act and the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) to, among other things,
(a) create regimes allowing for the forfeiture of property that has been seized or restrained under those Acts;
(b) specify that the proceeds resulting from the disposition of those properties are to be used for certain purposes; and
(c) allow for the sharing of information between certain persons in certain circumstances.
It also makes amendments to the Seized Property Management Act in relation to those forfeiture of property regimes.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

June 9, 2022 Passed 3rd reading and adoption of Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures
June 9, 2022 Failed Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures (recommittal to a committee)
June 9, 2022 Failed 3rd reading and adoption of Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures (subamendment)
June 7, 2022 Passed Concurrence at report stage of Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures
June 7, 2022 Failed Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures (report stage amendment)
June 7, 2022 Passed Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures (report stage amendment)
June 7, 2022 Failed Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures (report stage amendment)
June 7, 2022 Failed Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures (report stage amendment)
June 6, 2022 Passed Time allocation for Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures
May 10, 2022 Passed 2nd reading of Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures
May 10, 2022 Failed 2nd reading of Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures (reasoned amendment)
May 10, 2022 Failed 2nd reading of Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures (subamendment)
May 9, 2022 Passed Time allocation for Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 4:55 p.m.


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The Deputy Speaker Chris d'Entremont

This is where I give my daily reminder to keep questions and answer as short as we can so that everyone can participate.

The member for Port Moody—Coquitlam.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 4:55 p.m.


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NDP

Bonita Zarrillo NDP Port Moody—Coquitlam, BC

Mr. Speaker, I thank the member for speaking about health.

One in five people in this country works in the care economy. Those health care workers and care workers are being exploited in this country. They are immigrants, more often women without secured status; seniors caring for seniors in long-term care homes without, in too many cases, proper PPE, adequate linens or lifting equipment; and nurses, who were not even mentioned in the budget speech. They deserve better.

When will the government respect the women in the care economy by paying them properly, give immigrant care workers immediate permanent status, and give long-term care workers the protection they deserve with legislation?

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 4:55 p.m.


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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, during the pandemic, the federal government gave a number of supports for nurses. They are the backbone of our health care system. Literally millions of dollars were allocated to the provinces to support our nurses.

On a couple of occasions, including the other day, I have had the opportunity to talk with Ambassador Robles from the Philippines. We talked about how many people of Filipino heritage have the skills to be health care providers and nurses, and those skill sets are not necessarily being recognized here, so they are not working as nurses.

There is a wide spectrum in the health care field that we need to improve upon. We have to respect the fact that there is provincial jurisdiction and there is a role for the federal government, but I do believe that the federal government is working with provinces as much as possible. Hopefully, we will be able to continue to have more dialogue on that.

Not recognizing immigrant credentials, in particular, is really quite sad, and it needs to be dealt with. They could contribute so much more to our health care system.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 4:55 p.m.


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Bloc

Alexis Brunelle-Duceppe Bloc Lac-Saint-Jean, QC

Mr. Speaker, our colleague from Winnipeg North always gives lengthy responses, and I like that. I like his passion, and of course it is always a pleasure to ask him questions in the House.

My colleague talked about what is in Bill C‑19. I am going to ask him about what is not in it.

What is not in Bill C‑19 are the health transfers to the provinces and Quebec. These transfers have been requested by all provincial premiers and the Premier of Quebec, all the opposition parties in the House of Commons and all the parties in the Quebec National Assembly. The only ones saying no to health transfers are the Liberals.

My question is very simple. If someone is alone in thinking they are right, could it be because they are wrong?

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 4:55 p.m.


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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I addressed that issue at the very beginning of my comments where I said that even when I was the health care critic in the province of Manitoba about 30 years ago, provinces we always asking for more money. It is just something that is an annual thing.

What I found was that during the early nineties, when I was heavily involved in the provincial legislature, there was this threat that we were going to see the federal government get out of financing health care because provinces wanted to continue with the tax point shift, as opposed to a cash over. That is ultimately what I would argue, that back in the late seventies and early eighties there was some consensus that saw tax point shifts. That was part of the problem.

Today, we have health care accords with the different provinces. We understand the importance of health care. That is why I spent the first six or seven minutes talking about health care. Today, we have record amounts of health transfers, and we are looking beyond those in how we can support issues such as mental health and long-term care.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 5 p.m.


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Kingston and the Islands Ontario

Liberal

Mark Gerretsen LiberalParliamentary Secretary to the Leader of the Government in the House of Commons (Senate)

Mr. Speaker, I think the Conservatives are not interested in the Infrastructure Bank because of the five objectives it focuses on. It focuses on green infrastructure, clean power, public transit, trade and transportation, and broadband infrastructure. With the exception of one of those, which they might be remotely interested in, the rest are just topics the Conservatives are not interested in.

The reality is that the Canada Infrastructure Bank, and anybody can go to its website to see the projects that are under way through that bank, is providing innovative solutions for municipalities, in particular, and private industry to work with the government, with the expertise that can come along with those partnerships, to delivery real, quite often large-scale, infrastructure projects throughout the country.

Could the parliamentary secretary further expand on the importance of these infrastructure projects right in our local communities and what that means for the municipalities that are trying to build critical infrastructure for tomorrow?

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 5 p.m.


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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, in wanting to be fair to my colleagues across the way in the Conservative Party, I think we need to recognize that they are still trying to determine whether or not climate change is real.

Having said that, as my colleague points out, there is an issue where there is a bias toward the new economy and the importance of recognizing new energies. The point is that we have literally dozens of projects all over Canada. We are talking well over $30 billion, not $30 million, but $30 billion, and the Conservative speaking points that come from the backroom are saying that there is nothing happening in that bank. They need to update their speaking points.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 5 p.m.


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Conservative

Pat Kelly Conservative Calgary Rocky Ridge, AB

Mr. Speaker, during the member's speech, he challenged the Conservatives to google the Infrastructure Bank, so I took the opportunity to do so. I found its Wikipedia entry, which has a table that lists the various projects. However, I noticed, according to Wikipedia anyway, that exactly zero of them have been completed. Could the member elaborate on whether the Infrastructure Bank has actually completed any projects since it was established by this government?

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 5 p.m.


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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I would think that the member might want to consider expanding his research capabilities and possibly look directly at the Canada Infrastructure Bank website. He will be amazed with how much information he will be able to find there. He will be able to identify the programs that are actually being financed today.

My recommendation is to expand his research capabilities. The Conservative caucus has a lot of money. Let us start doing a little more, and let us start saying some positive things about the Canada Infrastructure Bank.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 5 p.m.


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Conservative

Dan Albas Conservative Central Okanagan—Similkameen—Nicola, BC

Mr. Speaker, it is an honour to stand in this place on behalf of the good people of Central Okanagan—Similkameen—Nicola.

Today, I am going to be speaking to Bill C-19, but I will also be speaking to some of the points that I am sure the Liberal government may not want to hear. Part of democracy means everyone having a say before a decision is made. As the previous speaker said, there are a number of things where the Liberals accuse us of having blind spots. I would simply say that the same goes for the Liberals. That is why it is important for debates to happen, for those ideas, and for the people at home to be able to make up their own minds. That is something I hope to do today.

One of the biggest challenges I believe Canada has right now is not debates over spending too much or not spending enough; it is credibility. There used to be a time when both Liberal and Conservative finance ministers spent considerable time and effort to come to this chamber and say that they had a path to balance. In our history, we have gone through world wars and pandemics. We have had cases where we have even survived Liberal government “spendathons” backed by the NDP, which put Canadian taxpayers on the hook for billions of dollars of debt that took decades to be straightened out, and a lot of pain.

When a finance minister comes to this place and says that the government has a path to balance or a balanced budget, that means a couple of things. Number one, it means that people know that the government has credibility when it lets out a bond and takes money from domestic lenders or from outside of Canada. It also says that the power of the government is in a very strong state, so if it decides to go with an infrastructure spending program or if it feels there is a hole in the safety net, depending on the needs of the day, there would be money for that, and taxpayers, both today and tomorrow, are going to be respected in those transactions.

When I go door knocking and speak to seniors or middle-aged people in my riding of Central Okanagan—Similkameen—Nicola, one thing I hear a lot is that they are very concerned that their children and grandchildren do not have the same opportunities they did at that period in their lives, and that in order to get a good job they need more and more education, which comes at great cost. Even if they get that great education, it is not always easy to find the work they need in their area of specialty. Now, there is a lot of work, and I appreciate meeting people who are doing whatever they can to get the skills they need so they can raise a family. However, people are feeling hurt. In all age categories, there is the cost-of-living crisis we are in right now. We have not seen groceries jump 10% since we had another divisive, big tax-and-spend Liberal prime minister in office. It almost plays to a T that we are somewhat repeating history. We have a big-spending government that makes bad choices and hits a debt crisis or oil shocks, and suddenly interest rates go up, inflation starts soaring and everyone is in a load of pain.

The pain people are feeling right now, where they cannot fill up their gas tanks or purchase the same amount of groceries they could just a few months ago, is pain enough, but young people are also feeling that the system does not work for them anymore because they cannot buy a home. They have given up on that. They are just trying to scrape by and do what little they can. Instead of putting their money into something that brings them equity, they are seeing their credit card bills go up to pay for those groceries and to have those little luxuries because they do not have a home. That is a real shame, and I think all of us here recognize that. This is not a partisan issue, when we recognize that a whole generation feels like it is not part of the economy. That is on all of us, and we have to work together to try to find ways to deal with that.

We will have debates in this place. I do not want to say that I have all the answers, but I will say that part of it comes with credibility. People need to know that their government is working for them, that it is not thinking for them but thinking of them. In question period, when I ask questions of the Minister of Finance, I do not get the sense that she is thinking of Canadians; I think she is thinking for them. She may be well intentioned, but I would also say, and I have been very open with this criticism, that it is a bad decision by the Prime Minister to give so much responsibility to a single individual: to be Deputy Prime Minister, which is an honour, I am sure, and to also be finance minister.

Being a finance minister is a full-time job. I remember seeing Minister Flaherty and how hard he would work. It was good and meaningful work. However, to add to that, by a Prime Minister who seems to be more about the jet-set life and seems to be more about playing a Prime Minister on TV than being a Prime Minister in this place, putting so much responsibility onto one individual, that is not fair to her and it is not fair to this place.

In my experience on the finance committee, we saw large sections of the budget bill just cut. The EI component, which is an incredibly important part, was cut. Why? Everyone agreed the government had botched it. There is so much in this budget bill. There are other things the Liberals have botched, but unfortunately the government members just nod and say they lost something and just keep going on like nothing has happened. That is the problem. The finance minister is too busy, the Prime Minister is too busy doing his own thing, and there is not a focused government in place.

Credibility is so important that when the finance minister says something, it can move markets. Having credibility is so important in a Minister of Finance and in a Prime Minister. Yesterday, Yves Giroux, the Parliamentary Budget Officer who works for all of us in this place, was at a Senate committee, the national finance committee. In response to being asked about whether the government's fiscal position and its numbers were credible, this is what he had to say: “I personally don't believe it is credible that there will be that level of spending restraint in the period 2024 to 2027, given all the expenditures that remain to be implemented by the government over that period of time.” When asked if these planned savings in that time frame were still feasible, he said, “If we were to believe the government's numbers, that would mean that in 2024 to 2027, operating and capital spending would grow by 0.3% per year, which is a level of growth that we have not seen in a long, long time.”

What did I say about moving markets? Actually, the Royal Bank of Canada just put out its macroeconomic outlook, and it said that the bank expects GDP to go down to 1.9% in 2023, which is a marked drop. What we have is very optimistic numbers that are not meeting the test of time. We have inflation shooting up. We have growth dropping down. People are tightening up their wallets so they can pay for filling up their tank, let alone anything else. This is not a good situation. For our Parliamentary Budget Officer to be saying that he cannot trust the numbers and that those numbers seem overly optimistic, that is a big alarm bell.

The Liberals are not credible on their budget implementation act. The minister is too busy. There is so much happening, and the Liberal government tries to portray a rosy outlook, that everything is good.

Even today, when the finance minister rose in this chamber, she did not want to talk about inflation, but she said to look over there, that employment is at an all-time high and unemployment is at an all-time low. The Liberals were trying to take credit for baby boomers, who, as we have known for well over a decade, eventually would retire, starting in 2016, and leave en masse. The Liberals are trying to take credit for something the baby boomers are doing themselves, something we all know as the demographics are changing.

This is where the Liberals are at. They are again trying to point away, telling us to look at a number because they do not want us looking at these other numbers. RBC is questioning the economy, and the Parliamentary Budget Officer is questioning the assumptions in the budget. It is up to parliamentarians to ask if what the Liberals are saying is credible. Are they treating government as a serious responsibility or are they going by the seat of their pants? It is sad for me to say that, because I would want any government in power to be credible, especially at times when there is crisis or tumult or trouble.

What else does “credible” mean? It means being credible on the small things and not just on the big macroeconomic level. Never have I seen, and many of my constituents have told me they have not, so much spent by any government in the history of Canada, or at least in their lifetime, with so little to show for it.

Economist Tyler Cowen has been speaking about this a lot in the United States, and it is a great concept for us to look at. It is called “state capacity”. In my mind, state capacity is having a military that can blow things up, having hospitals that can handle a pandemic, and having the ability to do everything in between. It is having a Service Canada office that can get us passports in a timely manner. It is having a military that can replace a 50-year-old Browning pistol without having to go through multiple procurements. This is something the Minister of National Defence is going to have to wrestle with.

I know the Liberals do not want to talk about health care transfers. They talk about how they are doing all these other things. However, premiers unanimously say that the one thing they ask for from the federal government is to supply them with more health care transfers. Given what we have seen in our health care system, we can see why they are asking for that. I personally believe that our health care system needs to change. A lot of those arguments need to happen at the provincial level, because a one-size-fits-all, Ottawa-knows-best policy is not good for this country. There is a reason provinces have the responsibility for health care.

If the Liberals do not want to give health care transfers, then maybe they could stick to their promises from 2019, and again in 2021, when they said they would hire and bring in all these doctors and nurses. In British Columbia, it is critical. There are places like Merritt and northern parts of the province that need to shut down the only emergency clinics they have because they do not have health care professionals.

If there is one thing the government can do, it is to just own up to its own commitment. It made the commitment, and if it cannot keep it, it should stand in this chamber and tell us that it cannot do that, and why. Was it a bad idea to begin with, or was it just being used as a way to get votes?

Yesterday I was on a show, and an esteemed Liberal colleague was also on it. He accused Conservatives of using a gimmick. He said that our motion to take the GST off home heating, electricity, gasoline and diesel was just a gimmick. For so long, groceries have been exempt from the GST, because they are life-sustaining. I do not think any political party disagrees that we should not be applying GST to foodstuff, which allows families to feed themselves. I think that is a consensus and I do not see anyone ever changing that.

We are telling the government, during this period of time, to just stop. It is getting windfall monies from oil and other commodities going up and it is getting all sorts of money coming in from inflation. In 2017, the government made all user fees by the Government of Canada go along with inflation, with the CPI, and what happened? That is inflationary policy. The government has never had so much money.

A little bit of work on the health care front would be helpful. A little bit of help by supporting common-sense, pragmatic suggestions, like suspending the GST, would go so far, yet the NDP-Liberals voted against that. Those members will say that we have all of these programs, like CPP and the Canada child benefit, which are all indexed to inflation. That means it is going to come down the road, and it is not here now at the time of the emergency.

The government has the money to do this, but the Liberals just do not want to use a Conservative suggestion, and that is wrong. It should not be based on who proposes an idea to decide whether or not it has merit. It should be whether the idea itself has merit. That is a problem in this chamber. I would hope that members in caucus would speak to it when they hear a good idea, and whether it comes from the NDP, the Bloc, the Liberals, the Conservatives or the independents, that they would take it to their caucus and try to work with it.

I will continue to go through a couple of things quickly. Let us take capacity. In the port of Vancouver, we know we that we have supply chain issues from the COVID pandemic. We can look at what happened in Shanghai. All those ports were shut down, with thousands of boats waiting to take products to other countries.

The port of Vancouver was rated recently by the World Bank in a survey as being one of the worst in the developed world. The Minister of Transport needs to get out to Vancouver and start looking at how to fix this. He cannot just say that it is someone else's responsibility. Yes, there is an independent authority, and I am sure it is trying its best, but at some point the government has to be accountable. If we want to deal with inflation, we should expect that our ports are able to run. Again, the survey did not call out many of the other ports in the United States. We should at least be at the same level as those other ones.

Look at the shemozzle at Pearson airport. It is terrible what people are having to go through. Blacklock's Reporter did a story on this today. The government decided it did not want to hire people back as aggressively and now we are at this particular stage. Yes, the mask mandates, and as I like to say “my way or the highway” mandate for travel are causing all sorts of issues. However, the Liberals are not showing up when it counts. They are not putting their hands on the wheel like we would expect a minister of the Crown to do.

I want to talk about productivity. Recently there were some comments from Bill Morneau, the former minister of finance. I am going to read what he said:

So much time and energy was spent on finding ways to redistribute Canada's wealth that there was little attention given to the importance of increasing our collective prosperity — let alone developing a disciplined way of thinking and acting on the problem," Morneau said in prepared remarks.

That says what this government has done on productivity. In its own budget, the government is saying that in Canada, it expects investment levels to remain low because people do not see us as a credible place to invest. The NDP wants to add all sorts of new taxes, and this government actually put a retroactive tax last year on the banks. We can have arguments about that, but when the government does those kinds of things, it sends out a chill on investment.

To conclude, this government needs to get serious, and this government needs to focus. It has not done that, but I hope it does.

I move:

That the motion be amended by deleting all the words after the word “That” and substituting the following:

Bill C-19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022, and other measures, be not now read a third time, but be referred back to the Standing Committee on Finance for the purpose of reconsidering the clauses in Division 15 of Part 5, amending the Competition Act, with the view to incorporate the consultation measures industry has been asking for.

I would appreciate hearing what members have to say and answering a few questions.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 5:20 p.m.


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The Deputy Speaker Chris d'Entremont

The amendment is in order.

Questions and comments, the hon. Parliamentary Secretary to the Leader of the Government in the House of Commons (Senate).

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June 8th, 2022 / 5:25 p.m.


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Kingston and the Islands Ontario

Liberal

Mark Gerretsen LiberalParliamentary Secretary to the Leader of the Government in the House of Commons (Senate)

Mr. Speaker, I hope the Conservatives are aware of the fact that the only thing their amendment does when it is moved right after a bill is introduced is give the member for Winnipeg North another opportunity to speak. That is great for the member for Winnipeg North, but I am feeling really left out, because I will only have one opportunity to speak on this.

The Conservatives are relentless in talking about, to quote the member, “a path to balance” in terms of the budget. Personally, I like to focus more on our debt-to-GDP ratio, and I will say why. It is more important because our country has added a million more people to it since 2015. Why is that important when we consider the debt-to-GDP ratio? That is a million more people who require services, a million more people who require infrastructure, but a million more people who, for decades to come, will be helping to fund the tax base that this country relies on.

Can the member not accept the fact that the debt-to-GDP ratio is more important? I would remind him to look back at the Conservatives' platform from last fall, where the Conservatives proposed to run a higher deficit than we did. That was the member for Durham, who is no longer the leader, but nonetheless—

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 5:25 p.m.


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The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Alexandra Mendes

The hon. member for Central Okanagan—Similkameen—Nicola.

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June 8th, 2022 / 5:25 p.m.


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Conservative

Dan Albas Conservative Central Okanagan—Similkameen—Nicola, BC

Madam Speaker, it is excellent to hear the member complain about the member for Winnipeg North.

I would simply say this. First of all, we proposed in the last election to shore up our health care system. It is something that every province wanted, including my own province. John Horgan, on behalf of all of the provincial premiers, asked that there not be any new spending or new social programs and to help provinces sustain their health care system. We put that forward because we felt it was a bedrock thing to do. Right now in my riding, emergency rooms are closing in certain communities on very short notice.

I would also say that the net debt-to-GDP ratio is going to be affected. RBC, in its macroeconomic outlook, is downgrading Canada's growth. That is huge. If we cannot build new homes, we are going to see it continue. Two out of five new Canadians who were surveyed said they were thinking of leaving Canada because they could not find a home, that it was not affordable.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 5:25 p.m.


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Bloc

Kristina Michaud Bloc Avignon—La Mitis—Matane—Matapédia, QC

Madam Speaker, I heard my colleague say that one solution to helping people deal with the rising cost of living could be to lift consumption taxes, which was part of the Conservative motion yesterday. However, I wonder if the government is even prepared to lift or lower these taxes.

Does my colleague agree with me that these taxes are there for a reason? Taxes are paid and sent to the federal government so that we receive services in return.

I feel that the public is not being provided adequate services right now, as demonstrated by the incredible delays in processing passport applications. The same applies to resolving EI fraud cases, with people spending hours on the phone before they get service.

Does my colleague not think that if the federal government is not prepared to lift or lower these taxes, it should at least provide these services to the public in a timely manner?