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 / 5:25 p.m.


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

I am afraid the time is a bit too short for the hon. member to answer the question fully, so we will return to him after Private Members' Business hour. The hon. member will have six and a half minutes remaining in questions and comments. I do not want to cut the member off when he is answering.

It being 5:30 p.m., the House will now proceed to the consideration of Private Members' Business as listed on today's Order Paper.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 6:30 p.m.


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

The hon. member for Central Okanagan—Similkameen—Nicola, on reply to a comment.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 6:30 p.m.


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Conservative

Dan Albas Conservative Central Okanagan—Similkameen—Nicola, BC

Madam Speaker, I certainly appreciate the question from the hon. member from Quebec. In her question, she asked whether I support less taxes and at the same time strong services being provided by government. It reminds me of an answer I received at a business luncheon from my predecessor, the Hon. Stockwell Day, before I was elected.

He actually said at that business lunch that he was a strong proponent and that he thought Canadians felt that usually a government is either a fit or a flabby government. It does not matter about the size; what matters is the health of government, and if it is fit, it is able to supply services at a reasonable level. If it is flabby and unable to healthfully be able to respond to things, it just is not as effective.

I support, again, that kind of fit government, and I think Canadians would too. They want their passports and they also want to get value for their dollar.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 6:30 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)

Madam Speaker, I will go back to the amendment that the Conservatives have put forward.

I will note that it is the role of the opposition to oppose, but it is not the role of the opposition to be on a relentless crusade of obstruction. Unfortunately, that is what we have seen at every step of the way with respect to this bill. I will recap that.

The Conservatives put forward amendments at second reading to not allow the BIA even to be scrutinized. Then they went on to move motions of concurrence to delay the debate at report stage. They moved multiple motions of unanimous consent, again to delay the debate on this bill. They put in 62 amendments at report stage, and some of those were to cancel the luxury tax and health care rebates. Now there is another motion to amend the bill at the final reading.

Would the member not agree that perhaps it would be in the better interest of Canadians for Conservatives to actually play a constructive role in scrutinizing this bill, as opposed to being on this relentless crusade of obstruction?

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 6:30 p.m.


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Conservative

Dan Albas Conservative Central Okanagan—Similkameen—Nicola, BC

Madam Speaker, there are two sides to every coin. We have a job to do, which is to present views and to be heard. The government also has tools, such as time allocation at report stage. The Liberals imposed time allocation almost right away, before many members, including members in their own caucus, had a chance to speak. We could talk about process here, but what I am going to talk about is the actual bill.

In this amendment, we would send back to committee elements of the changes to the Competition Act that have been proposed by the government. We did not have a lot of time to scrutinize them. Even when we had the Canadian Chamber of Commerce appear, one of Canada's most trusted industry associations, they said they had not had time and had not been able to consult. We just asked the government to stop on this issue and consult with industry before proceeding with those amendments.

While this member may want everything to go his way 100% of the time, this is a democracy and people should be heard.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 6:30 p.m.


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Green

Elizabeth May Green Saanich—Gulf Islands, BC

Madam Speaker, many points of my hon. colleague's speech prompted me to want to ask a question, but I was very pleased to hear his analysis of what is going on at the port of Vancouver.

In my riding in Saanich—Gulf Islands, the inefficiencies in loading bulk goods in the port of Vancouver have resulted in a real crisis of freighters basically getting free parking in the waters of the Salish Sea, all the way up as far as off of Ladysmith. They are stuck waiting there, because they have several holds and the delivery of grain and other bulk goods like coal is not efficient.

Given that the harbour authorities have been created as stand-alone agencies at arm's length from the minister, what does the Minister of Transport need to do to ensure that we get the port of Vancouver working efficiently? It hurts everyone from grain farmers in the prairies all the way through to my constituents in Saanich—Gulf Islands.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 6:35 p.m.


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Conservative

Dan Albas Conservative Central Okanagan—Similkameen—Nicola, BC

Madam Speaker, this is where I have always said that leadership is everything. If something is not working, we would expect the minister to be there and to be immediately working with all the force that they can to identify where the gaps are and how to close them.

As my fellow member from British Columbia has said, there are externalities that are being created by the slow processing times. In my community, there are small business owners who are suddenly receiving bills from the port in large amounts that are causing them to raise their prices because they cannot afford to sell the furniture or items that they have brought in, with the shipping included, at the rate that they originally promised. This is causing inflation and it is causing aggravation.

As the member said, there are some environmental externalities that are causing negative spillovers. We should be asking the government, but unfortunately this Minister of Transport is missing in action when it comes to the port.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 6:35 p.m.


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Conservative

Gérard Deltell Conservative Louis-Saint-Laurent, QC

Madam Speaker, I want to congratulate and thank my colleague for his speech and his very honest, but unfortunately sad, presentation of the financial reality of this government.

The big issue of the day is inflation. It has hurt every family, especially when we talk about the price of gas. We all realize and recognize that elsewhere offshore we see great countries applying positive action to reduce taxation, such as the United States, Germany, Great Britain, Australia and South Korea.

I want my colleague to talk about why the government is not doing the same as our allies.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 6:35 p.m.


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Conservative

Dan Albas Conservative Central Okanagan—Similkameen—Nicola, BC

Madam Speaker, every economy is different, but the member is 100% right. Those G7 countries and other OECD countries are doing what they can to protect not only their consumers from the issue of high gas prices, but their economies.

If we look to Alberta, it has reduced its gas tax when it is above $90 a barrel. Trevor Tombe, a University of Calgary economist, has said that this reduces inflation in Alberta by half a percentage point. It not only helps consumers put food on the table and drive to work and helps small businesses cope; it protects the economy from rising inflation. That is what the government should be doing. It is not doing it.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 6:35 p.m.


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NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Madam Speaker, I am pleased to rise to speak during third reading of Bill C-19, which of course is the budget implementation act. I thought I might treat it as a bit of a case study, because in the debate about our electoral system we often hear that Canada needs strong majority governments in order to have decisive decision-making and action and to not end up with a hung Parliament. This is one of the main motivations for some to oppose electoral reform, and particularly forms of proportional representation, which tend to lead to more instances of minority Parliaments and minority governments.

My view is that the process around this budget bill, without being a perfect process and without the bill being a perfect bill, was actually a decent process, so I want to talk a bit about some of the improvements that were made to the bill during the course of it and some of the ways that it suggests we can make progress on other issues in this Parliament through members of various parties working together, and not only members of the same party working together. I think this process, in fact, showed that members can be nimble in terms of whom they are working with on particular issues and still get outcomes that make sense for Canadians and that benefit a lot of Canadians. We do not need one party having 100% of the power here in Parliament in order to make substantial progress for Canadians.

The first example I would point to is related to changes to the disability tax credit. We heard a fair bit of testimony at committee on this point. A Conservative colleague of mine on the committee brought forward an amendment, and the way this happens, as I am sure members will know but folks listening at home may not, is that parties will typically submit their amendments independently. Sometimes there are pleasant surprises when we receive the package. In this case, it was an identical amendment.

I was happy to work with Conservative colleagues and my Bloc colleague on the committee to pass an amendment that would change the disability tax credit requirements. A person has to show that they spend 14 hours a week tending to their condition, as somebody with type 1 diabetes does, whether that is injecting themselves with insulin, going to the pharmacy to get insulin, monitoring their blood sugar or doing other things that folks living with type 1 diabetes have to do. Then they often have to prove this every year, despite the fact that type 1 diabetes is not a condition that simply goes away and despite the fact that the requirements of the condition do not simply go away. Nevertheless, people have had to constantly show they have it, again and again.

This is reminiscent of some of the stories we have heard over the years out of Veterans Affairs Canada about veteran amputees who have to demonstrate every so often that, in fact, their leg is still missing and they are still an amputee and continue to require the same help. Folks with type 1 diabetes were having to continually show this.

We were able to bring forward an amendment, pass it at committee and even overcome some procedural wrangling, after the amendment was initially ruled out of order. We were happy to overrule the chair at committee on that point and very pleased that the Speaker saw fit to uphold the will of the committee in respect of that amendment when it came back to the House.

What that means concretely for people who are living with type 1 diabetes is that they will no longer have to do all of the paperwork, with the bother and expense that comes with it, in order to qualify for the disability tax credit. Once they have qualified as having type 1 diabetes, that will be sufficient to qualify them in the future.

I think that was a really hopeful exercise, and not just hopeful for Parliament in general, but also hopeful because we know that when it comes to Canadians living with disabilities, there has not been enough meaningful action on the part of the current government to serve that community. We saw that last June, when the government presented a bill for a Canada disability benefit that had absolutely no details about what the benefit would be, how much it would be, what the eligibility criteria would be and how it might impact other benefits that people living with a disability already receive. There was a lot more work to do, and since the new Parliament was elected in the fall, an ongoing priority of the NDP has been to call on the government to present new legislation and better legislation that would actually tell Canadians living with disabilities what the government has in mind and would provide far better ongoing income support for people living with disabilities.

Why is that important? It is because under the current federal programs and under provincial programs across the country, people living with disabilities have been consistently legislated into poverty to the extent that someone with a disability has to rely on existing disability pensions of various kinds across the country, none of which provide an income that brings them to the poverty line. This means that as soon as they have to rely on those things, people know they are going to be living a life of poverty with all of the challenges that come with that. Those are challenges of poverty over and above the challenges people living with disabilities already face.

With the great work from my colleague, the NDP disability critic in this Parliament, to press the government to bring legislation forward, we finally got wind on the Notice Paper that legislation was coming. It was an exciting moment. We had hoped to get more detail, just as we had hoped that certain changes to the disability tax credit in this legislation might have meant that finally the government would act on the long-standing call by people living with type 1 diabetes to make their lives easier and make their access to the disability tax credit available.

That was a disappointment, initially. However, by working together across party lines, we were able to remedy that, similar to the tabling of the Canada disability legislation. I almost said the “new” legislation, but I think I would have misspoken because it is pretty much the same legislation and has the same problems, therefore. It does not spell out what the program is supposed to look like. It does not let Canadians living with disabilities know what kind of financial help there is and the extent of financial support they could hope to receive from the federal government.

I would go further and say that part of the problem with legislation like this, and there are a couple, is it essentially just empowers cabinet to design a program and fund that program by statute, without having to return to Parliament. There is a procedural question, which I think may be less interesting to a lot of Canadians, but that procedural question is important to the extent that Parliament is a place that is meant to provide oversight on government spending. This bill would empower the government to create a program without having any idea what the price tag is, when it should be quite clear with Parliament on how the program is going to be designed. Parliamentarians should be able to authorize a new program like that knowing those things. That is a problem.

The other problem with setting up that program in legislation without actually legislating it is that a future government and a future cabinet that does not agree with the program or that wants to change it would not have to come back to this place. There would be no legislative process. This would also mean that the time it normally takes for a bill to go through the House of Commons and through the Senate would not be there. That is the time civil society often uses to mobilize in order to influence the content of legislation and government policy. It is an opportunity lost. It would make it very easy for a future government to undo whatever the current government does. If it finally gets around to creating a program for the Canada disability benefit, it would be far too easy for it to be undone.

Our experience at committee with the initial disappointment around the disability tax credit shows that a minority Parliament can come together and can have a positive influence on government policy and legislation. It can get things done for people that a majority government clearly would not have done because it was not in the Liberals' proposal.

I would also point to the example of employment insurance reform, something the government promised in its election campaign in 2015. We have had two elections since. The government has been in power now for coming on seven years, yet we have not seen any meaningful EI reform. We have to bracket a lot of what happened in the pandemic, because there were substantial changes to the EI program during the pandemic, but the speed with which those reforms occurred shows that it is possible to make meaningful reform quickly. Also, the nature of many of those reforms shows that what workers have been asking for in their EI program is in fact possible. This is not pie-in-the-sky stuff. Most of what they have been asking for are things the government did through the EI program during the pandemic.

As the pandemic recedes somewhat, at least for the moment, certainly the Liberals are of that view when they are talking about their financial support programs, less so when they are talking about public health restrictions. As the pandemic recedes somewhat, the government is going back to its regular inaction on the employment insurance file.

The Liberals finally did try to do something important but relatively minor in the grand scheme of systemic employment insurance reform: They presented a proposal to change the EI appeal board and undo some of the damage that was done by the Harper government to the EI appeal board. They fell flat on their face. It was not well received, even by the very people the Liberals sought to please with those reforms. They were lambasted for it, and they themselves sought to remove that part of the budget bill.

New Democrats were pleased to support that removal, for two reasons. One was that we agreed that those reforms were misguided and did not represent what I would dare to call a consensus among EI stakeholders about how the system, and particularly the appeal board, has to change. However, we were glad to support the reforms on a condition, which was satisfied, which was that the minister declare publicly that they would bring legislation back in the fall in order to make better changes to the EI appeal board system that people would actually welcome. Having secured that commitment, we were happy to support the removal of those appeal board changes that were quite ill-conceived.

However, it does raise a question of trust in the government. After being in government for well over six and a half years and having not really made any major reforms to EI except those that were forced by pandemic circumstances, when they finally came out of the gate to do something, how could they get it so terribly wrong? I take some solace in the fact that we have a minority Parliament, that Canadians did not entrust the Liberals with a majority of seats here in the House of Commons, that they do not have 100% of the power in this place and that negotiation is possible, because I think it is leading to better outcomes.

There is another example that is a little outside the scope of this bill, but it is an important one when we are talking about the pandemic. Early on in this Parliament, one of the first things that the finance committee did was to deal with Bill C-2, which established the new pandemic benefit regime that has now expired. It was instituted in December and was effectively the pandemic support regime that saw us through the omicron wave, with some notable changes by order in council right after the legislation passed, because as New Democrats said at the time, the reason we voted against that legislation was that we thought it would be inadequate to the task. I want to zero in on an important change that was made to those programs, particularly the wage subsidy program that was conceived in that bill.

Working with members of the Bloc and the Conservative Party, we were able to pass an amendment that said that companies that were receiving wage subsidy money under the authority of Bill C-2 would not be allowed to pay dividends to shareholders while accepting money from the government that presumably they needed because they did not have enough revenue to stay afloat. Clearly, if they were making big dividend payments to their shareholders, they did have the money, so that was an appropriate reform. It was the kind of thing that New Democrats had called for at the inception of the wage subsidy program that the government would not agree to initially, but we finally found a way, again working across party lines. That is not always an easy thing to do, but it is always a worthwhile thing to try to do. This was again an example of Parliament being able to correct course for a government that had got off on the wrong foot.

It really matters and it serves Canadians well that we are in a Parliament that does not have a majority government. I do hope that is something Canadians will consider in the next election. I also hope that they will consider electoral reform when organizations like Fair Vote approach them to talk about it. I will remind some of my Conservative colleagues—and we have gone into it a little over the budget debate—that reform is the want of folks around here, and it is not a bad thing. Conservatives will know that they had more share of the popular vote than the Liberals, who are in power, but they got far fewer seats.

We just saw, in the Ontario election, the New Democrats get about 30 seats to the Liberals' eight, approximately, despite having roughly an equal share of the popular vote. We saw the Ford government form a majority with a very small amount of support when we consider how low turnout was and how the way we vote under the first-past-the-post system can generate very distorted electoral outcomes.

I raise all these things to contribute to the debate on this bill, but I also hope to contribute to a larger debate about how we elect Parliaments that select governments here in Canada and show that we have been doing good work in this Parliament. We have been correcting course for the government when it got it wrong on the first go, and that has been made possible by virtue of having a minority Parliament. It is exactly because we do not have a majority government that these corrections and some of the good things that came out of the committee process have been possible.

One of the things I hope we may yet make progress on, which I will be looking to colleagues in other parties for support on, is the call for a low-income CERB repayment amnesty. This is something that has come up at the finance committee. It heard compelling testimony, and there is an important moral dimension to this issue. We are talking about people whose incomes are already below the poverty line. CTV did a piece on this last week, but it is not new. It has been a running story and has had various permutations through the pandemic, with the CRA sending letters to Canadians already in very difficult financial straits even before the current round of inflation hit us. It is all the more so now that people are struggling with the cost of groceries. The cost of housing has been an issue—let us not kid ourselves—for a long time. The rate of acceleration of the problem got worse during the pandemic, but the problem was getting worse even before the pandemic.

People who applied in good faith for help and were told to apply, in some cases, by their very own Liberal MP are now getting letters saying that they have to pay the money back, that they did not qualify and were not eligible. In some cases, they are people who applied for employment insurance and would have preferred just to get EI, but were told no, they could only get CERB. Then they got the CERB cheque and figured that was what they were entitled to. They applied for EI, were told no, and got the CERB. CERB sent them the cheque; they did not ask for it, so they thought it must be okay. They spent the money because they had lost their jobs and were trying to get through a global pandemic, which I think we can all agree was not an easy thing to do no matter what people's incomes were, let alone if they had just lost their jobs, and now the government is asking them for that money back. They do not have the money, and the efforts to collect that money, particularly from people who are already below the poverty line, are not going to bear fruit.

There is the moral dimension in terms of the anxiety and the financial harm that it is causing, but there is also a very real financial dimension. We heard a bit about that at committee. The government is planning to spend around $260 million chasing after a CERB debt that is a function of how it publicized its own program and encouraged people, and in some cases forced people, into the CERB system as opposed to the employment insurance system. For the $260 million that the government is going to spend over the next three or four years chasing that debt, how much is it actually going to get back? I think it is unlikely that it is going to get back $260 million.

I would love to know. I would love to have the government tell us how much it thinks it is actually going to get back. I have asked the question. I asked it at committee and I asked in a number of different fora and I cannot get an answer. It is shocking to me that the government would decide to invest $260 million to collect a debt that it does not know the value of, let alone the likelihood of succeeding. When we talk about investing over a quarter of a billion dollars in collecting a debt, we would want to be darn sure we are actually going to get that money back. Even if it makes its money back and calls it a wash—spend $260 million and get $260 million, which I think is very unlikely—it would not be worth it. It would not be worth it because the time and expense that it is spending chasing after low-income Canadians who are already in dire straits, particularly in this context of inflation, is time and expense that it could spend chasing tax evaders who are hiding their money out of the country and using other means to not pay their fair share. It would get a better return.

There is a good financial argument for a low-income CERB repayment amnesty, and I hope that in the context of this Parliament that I have been talking about, we will find support among enough other parties to convince the government to do the right thing, which is to not chase that debt and try to wring it out of low-income Canadians but instead divert the CRA's resources to chasing the people who are really getting away with something, people who are not paying their fair share and who have the resources to pay it back.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 6:55 p.m.


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Bloc

Gabriel Ste-Marie Bloc Joliette, QC

Madam Speaker, I want to commend and congratulate my colleague on another very interesting speech. He always has something constructive to say, both here in the House and in committee.

I am concerned about the length of the budget implementation bill currently before us. Bill C-19 is a mammoth bill that amends numerous laws and deals with many issues that have nothing to do with the budget, including, for example, enforcing the justice system in space and conducting strip searches in prisons.

What does my colleague think of the fact that the government regularly resorts to such mammoth bills that lump together so many issues? Can committees and parliamentarians study all this thoroughly?

On top of that, the paper version of the bill that was given to the opposition was some 420 pages long, while the official PDF version that was posted online was over 440 pages long. Could my colleague comment on that?

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 6:55 p.m.


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NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Madam Speaker, I will start with the second question. The fact that the version of the documents tabled in the House is not the full version is obviously a problem, and it is part of a broader issue that bothers me a bit. We no longer see paper copies being tabled these days. For example, as a parliamentarian, I was unable to get a copy of the blue book of the estimates. The government and the House of Commons only work on computers now, whereas I work better with a paper copy, so I am having a tough time adapting.

As for omnibus bills, that is something that has been highly criticized, and rightly so in my opinion. If governments want to keep introducing massive bills, then I think we might need a separate process for budget bills.

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June 8th, 2022 / 7 p.m.


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Green

Elizabeth May Green Saanich—Gulf Islands, BC

Madam Speaker, I thank my hon. colleague for Elmwood—Transcona for a thoughtful discussion of what minority parliaments can do together.

I also lament the failure to provide the disability tax benefit, as does my colleague, the member for Kitchener Centre. We expected it. It should have been in the budget and it should have been in Bill C-19. I appreciate that we have made some progress for people with type 1 diabetes, but it is not nearly enough, nor is it fast enough.

The member will not be surprised that I will ask him to expand on his points about proportional representation. It is certainly timely, given the results from Ontario, where the election had the lowest voter turnout, as I understand it, in the history of that province. Barely 43% voted, which means that nearly 60% of Ontario voters did not vote.

I was taken with a column in Rabble newspaper by Karl Nerenberg on all the fetishizing and coverage by the media in just looking at the polling and kind of announcing that Doug Ford was going to win before the campaign started. Does the member feel that this played a role in reducing voter turnout?

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 7 p.m.


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NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Madam Speaker, I do often worry about the extent to which the publishing of polls can affect public opinion, but it is something that is accentuated in a first-past-the-post system. If there is a proportional system of some kind, then in spite of whatever polling is saying about who is going to win the most seats, people can still feel they are contributing to electing people they agree with and who are going to speak on their behalf and raise issues that are of importance to them.

That effect is amplified by the voting system we have. Unfortunately, getting information about where people are at and the kind of attitude pundits have when they are predicting outcomes can affect voter turnout. I would hope that by moving toward some kind of proportional system we could diminish those effects, because people can still go and vote with confidence.

I was quite disheartened by the recent comments of the Prime Minister about proportional representation and some rewriting of history in what he presented to the electorate in 2015. Perhaps someone else will want to ask me a question about that and I can elaborate a little further.

Budget Implementation Act, 2022, No. 1Government Orders

June 8th, 2022 / 7 p.m.


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NDP

Taylor Bachrach NDP Skeena—Bulkley Valley, BC

Madam Speaker, coincidentally, I was going to ask my brilliant colleague from Elmwood—Transcona about the Prime Minister's recent comments, which I was shocked to hear, frankly. I thought they were flippant and really did not do justice to the commitment he made to Canadians. It is a broken promise that really betrayed so many people in this country, especially young people.

Could the member speak to his own reaction to the Prime Minister's recent response?