Bill C-19

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

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.

Budget Implementation Act, 2022, No. 1

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, I would like to speak to the investments mentioned in the budget that we are making in the defence and security of our country.

Before I get into specific issues, I would like to mention two things: first, the importance of defence and security industries from the economic point of view; and, second, how Ottawa, as a city, is very well placed to be the hub of companies involved in the ISR, intelligence, surveillance and reconnaissance, segments of the defence and security industries.

The Canadian defence and security industries are an essential service and a critical sector in Canada’s economy. These companies are highly innovative, export intensive and provide high-wage employment. These companies export 54% of their total sales. These companies provide employment to 64,000 people whose salaries are about 60% above the average Canadian manufacturing salaries.

During the last couple of decades, we have seen most of our manufacturing jobs outsourced to low-cost manufacturing countries across the world, but the jobs and manufacturing facilities of Canadian defence and security industries will never be outsourced. Also, for the U.S. defence purchases, which run into hundreds of billions of dollars every year, Canadian companies are considered to be U.S. domestic companies, offering a huge advantage to the Canadian defence and security industries.

Ottawa, as a hub, can be home to ISR companies, similar to hundreds of small companies around Washington, D.C. and the Annapolis beltway. Also, we are just few hours away from the centre of defence establishment in the U.S. We already have several companies in defence and security industries in Ottawa today. We also have Defence Research and Development Canada. Decision-makers on technology and procurements are also located here. All of these make Ottawa an ideal location for promoting it as the hub for ISR industries.

Canada is geographically well placed, with the powerful and friendly United States as our neighbour, who also is our major economic partner. The physical security threats to the country from outside our borders are minimal, and Canada was never worried much about physically protecting our land.

National defence is a fundamental responsibility of the federal government. In addition to protecting Canada from international threats and defending our sovereignty, the Canadian Armed Forces play an important role in making the world a safer place.

Budget 2022 recognized those challenges and proposed new action to respond to them. It invested in Canada’s defence capabilities, and in the alliances that will ensure a strong and coordinated global response to the ongoing challenges that the world faces today. Based on recent events and the changing global environment, the government acknowledged the requirement to reassess Canada’s role, priorities and needs in the face of a changing world.

Budget 2022 announced a defence policy review to allow Canada to update its existing 2017 defence policy, “Strong, Secure, Engaged”. In my view, merely updating the current policy is not enough. There has been a paradigm shift in the kinds of threats facing our country.

First, we have cybersecurity threats, including those that come from foreign actors, that target Canadians, Canadian businesses and our critical infrastructure. As Canadians grow more dependent on digital systems, the potential consequences of cyber-incidents continue to increase, and Canada needs to be ready.

Second, we have the spread of misinformation and disinformation that is directly challenging the stability of even the most long-standing democracies. Foreign threats to democracy, including state-sponsored disinformation, which is misinformation that is deliberately targeted to deceive people, have continued to grow amidst rising geopolitical tensions, a global pandemic and the rapid evolution of technology.

Third is biological threats that know no boundaries. The nature and severity of biological threats has grown in recent years. The COVID-19 pandemic has highlighted the potentially catastrophic impacts of a deliberate biological event. Concerns are growing that the pandemic's unprecedented scale and reach could inspire terrorists to turn to biological weapons. United Nations Secretary-General Guterres has understood this threat. He warned:

The weaknesses and lack of preparedness exposed by this pandemic provide a window onto how a bioterrorist attack might unfold – and may increase its risks. Non-state groups could gain access to virulent strains that could pose similar devastation to societies around the globe.

The threat due to domestic terrorism is on the rise due to increasing hate and due to the spread of misinformation and disinformation. During the latest occupy movement, the cross-border connections between the extremist groups were alarming. Based on these threats, in my view, merely updating the current policy is not enough. We need a change in our approach to national security. We need a unified approach to defence. We need a unified approach between all government departments to seamlessly share the information for a unified response. We need a unified command to address the modern needs of security.

The existing policy document, “Strong, Secure, Engaged”, stated:

This policy is deliberately ambitious and focuses, first and foremost, on the heart of the Canadian Armed Forces – the brave women and men who wear the uniform.

We know how this worked out.

The document was geared more toward the big-ticket items like ships and fighter aircraft, which, while important, do not address the major threat that Canada and Canadians are facing.

In the current policy document, “Strong, Secure, Engaged”, which is 113 pages long, the word “misinformation” is mentioned only once. Similarly, the word “disinformation” is also mentioned only once. Also in this policy, the investment in cybersecurity was under “Joint Capabilities”. It was grouped with IT and communications, signal intelligence, chemical, biological, radiological, nuclear and explosive detection and response capabilities. All of these had just a $4.6-billion investment over 20 years out of about $164 billion in proposed spending.

We should stop saying threats involving guns and bullets or ships and fighter planes from foreigners invading our land and sea are the only responsibility of the Canadian Armed Forces; or that cybersecurity threats are the responsibility of the Communications Security Establishment alone; or that biological threats should be handled by the Public health Agency of Canada and the Canadian Armed Forces role is limited to providing a few medics; or that threats posed by misinformation and disinformation are the responsibility of maybe Canadian Heritage or the Canadian Security Intelligence Service; or that the threat from domestic terrorism is the responsibility of the RCMP, CSIS and local law enforcement agencies.

We should stop compartmentalizing the threats and divide the responsibility. We need to act cohesively.

We need generals who have a Ph.D. in artificial intelligence and other leading technologies. We need generals with a Ph.D. in biology. We need to completely start afresh and come up with a comprehensive strategy and policy. The existing policy document “Strong, Secure, Engaged” focused on a $164-billion investment in procurement of traditional assets and tools, including ships, fighter aircraft, etc.

When we review this policy, it may be a good idea where the new high-technology companies are going. As an example, a Silicon Valley company called Anduril is succeeding commercially in transforming the U.S. and allied military capabilities with advanced technology. It says that the next generation of military technology will depend less on advances in shipbuilding and aircraft design than on advances in software engineering and computing. Unlike traditional defence contractors who focus primarily on hardware, its core system is an autonomous sense-making and command and control platform that serves as the core platform for its suite of capabilities.

Ideas are turned into deployed capabilities in months, not years, saving the government and taxpayers money along the way. The company combines military veterans with engineers who are experts in artificial intelligence, robotics, advanced sensors, secure networking, aerospace, virtual reality technology, aircraft modelling and simulation. We should look at companies like this to see what is happening elsewhere and where the defence systems are going.

I would like to quote extensively from the report, “A National Security Strategy for the 2020s”, prepared by the Task Force on National Security and the University of Ottawa’s Graduate School of Public and International Affairs.

It said:

We are living in a time of intense global instability when the security of Canada and other liberal democracies is under growing threat. An increasingly aggressive Russia is only one of a series of threats, both old and new, that endanger national security in Canada. It exemplifies the worrying re-emergence of great-power rivalry. It also interacts with or amplifies other threats, such as the use of new technologies to wage cyber-warfare, an increase in ideological extremism at home and abroad, attacks on democratic institutions, and transnational threats such as climate change and pandemics. We witnessed a different constellation of such threats in the protests that blocked border crossings and disrupted Canada's capital in early 2022. Where once the state was the focus of these threats, individuals and societies have also become targets.

When these and other threats reach the scale and potential to endanger what matters most to us as a country - our people, our democratic values and institutions, our economy, our society and our sovereignty - Canadians expect their government to protect them. Yet Canadians and their governments rarely take national security seriously. Taking shelter under the American umbrella has worked well for us.... We have not experienced a direct violent attack against our citizens in recent memory on the same scale as some of our allies, with the last major one being the Air India attack of 1985. This has made us complacent and paved the way for our neglect of national security....

Our peers, including our partners in the Five Eyes partnership (Australia, New Zealand, the United Kingdom, and the United States) are reacting to this rapidly changing situation by revamping policies, identifying new tools and authorities, reforming institutions, devoting new resources to security and seeking new partnerships. They possess not only a deeper appreciation of the threats facing the West but also a more sophisticated national security culture writ large.

The report makes the case that Canada is not ready to face this new world. As a country, it says we urgently need to rethink national security.

The best part of the report is that the core recommendations do not require massive amounts of new spending, but, rather, focus on making better use of the tools we already have and improving co-operation among key partners.

The report makes recommendations in four broad categories.

Number one is to develop new strategies. Canada needs a national security strategy that reflects today’s realities. We can no longer count on some of the traditional pillars that have guaranteed our security and prosperity for decades. The essential first step is to hold a public review of national security. A thorough and transparent review would help inform the public, highlight priorities, identify the policies and tools required to address them, and point to the required changes to governance. In reviewing its national security strategy, the government should also take a hard look at whether its foreign, defence and development policies are adequate. This does not mean an isolated update in each case, but a holistic approach that examines all our national security assets in a coordinated fashion.

Number two is to strengthen existing tools and create new ones. Canada must build new tools and make better use of existing ones to deal with this diversifying and intensifying range of threats. More specifically, Canada should invest more in the following areas: sharing information within government, sharing information with other levels of government, reviewing outdated legislation, enhancing the use of open-source intelligence, strengthening cybersecurity, protecting economic security, guarding against foreign interference, and deterring organized crime and money laundering.

Number three is to enhance governance. Canada needs to rethink its national security governance framework: how decisions are made, policies developed and information shared.

Number four is to increase transparency and engagement. Many Canadians today mistrust government. This has major implications for national security. This erosion of trust opens space for misinformation and disinformation to spread, which weakens democratic institutions and contributes to a vacuum that hostile actors do not hesitate to fill. In this context, the national security community’s tradition of secrecy is outdated and counterproductive. As such, the report strongly recommends that the national security community’s recent engagement efforts be significantly ramped up, both with the public, including civil society, the private sector, the media and academia, and with Parliament. The community, moreover, must continue and intensify its efforts to increase diversity within its ranks.

It has been over 15 years since we produced a national security or foreign policy statement. We have not seriously reviewed the Canadian Security Intelligence Service Act since CSIS was established in 1984. We need to have an integrated approach involving the Canadian Armed Forces, the Canadian Security Establishment, the Canadian Security Intelligence Service, the Public Health Agency of Canada and other agencies dealing with defence and security.

I will conclude with a quote from Alex Deep. In his article “Hybrid War: Old Concept, New Techniques”, in the Small Wars Journal, he mentions that we need “an adaptable and versatile military” to overcome the complex threats posed by the modern hybrid war, which combines all the conventional and irregular components.

[Michael Chong, Conservative, Wellington—Halton Hills, ON]

Madam Speaker, on a point of order, section 48 of the Constitution Act, 1867, requires the presence of 20 members in this House, including the Speaker, in order for business to be conducted.

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

I would remind the hon. member that there are no quorum calls following Motion No. 11.

[Michael Chong, Conservative, Wellington—Halton Hills, ON]

Madam Speaker, I am not making a quorum call. I am just making the point that the Constitution Act, 1867, section 48, requires the presence of 20 members. I count the presence, including yourself, of 17 members. Surely, the government would want to ensure that if the process by which this bill were to be adopted in this House were ever to be challenged in court, it would be upheld. That is the simple point that I would like to make.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Madam Speaker, first and foremost, the member should probably recount the members who are actually in the House, and he will find that there is a quorum, even under the old rules. As you have pointed out, Madam Speaker, we are under Motion No. 11 rules, which received support from a majority of members of the House.

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

To make it very clear again, before members go any further with this point of order, I would remind them that on May 2, the House duly adopted an order prescribing that the Chair shall not receive any quorum calls after 6:30 p.m.

The Chair rendered a decision on the admissibility of the motion, including the section on quorum calls during extended sitting days in May and June.

The ruling can be found in the Debates of May 2, 2022 at pages 4,577 and 4,578. I would invite the member to read the ruling of the Speaker to find that this matter has already been settled.

Questions and comments, the hon. member for Central Okanagan—Similkameen—Nicola.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Madam Speaker, I know it is getting a little late, so I first want to thank the member for being here to participate. It sounded a bit like a canned speech, but I will leave that to the member to decide whether it was by his own hand or someone else's.

I think it was around this time five years ago that the former minister of national defence tabled a new national defence policy. I have been listening to what this member wants for national security. I would simply ask him to speak with his caucus because, quite honestly, the government has been terrible on these large policy reviews in other areas of government.

If we look at the mess that the current Minister of National Defence has inherited and how our Canadian Armed Forces is underprepared in so many different ways, it is woeful. It is shameful. The member may want to consider that, rather than proposing new policies, perhaps the government should actually start filling the gaps that exist right now.

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, as I mentioned in my speech, in 2017 we had a policy document, but things have changed tremendously in the last five years. Misinformation and disinformation, while not a major factor five or six years back, have now become a major factor. We did not have the pandemic then, but now this pandemic has shown that a man-made virus could create havoc throughout the entire world. These are the reasons why the government has said, rightly so, that we are going to review the policy and update the existing policy document.

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

Madam Speaker, I would like to thank my colleague for his speech, which did not have the slightest connection to Bill C-19.

I know that when a point of order is raised to have the Chair ask members of the House to ensure their speeches are on topic, it is always interpreted very broadly. In this case, however, my colleague's speech had absolutely nothing to do with Bill C‑19.

First the government introduces a special motion forcing us to sit until midnight every night, at its whim, under time allocation. The normal process of debate in the House is not being followed. Now the government is sending in Liberal members who, as interesting as their speeches are, are more or less filibustering on Bill C‑19.

My question for him is—

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

I am sorry, but I must leave time for a response.

The hon. member for Nepean.

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, if the hon. member had read the budget, he would know that there is an entire chapter on this. Not only has $8 billion been invested on the basis of the policy that was published in 2017, but I can go on to read what the government has announced in investments.

The government has provided $875 million to address the cyber-threat landscape, based on Canada's first comprehensive cybersecurity strategy. On misinformation and disinformation, the government has provided $13.4 million for the G7 rapid response mechanism. The government has provided $10 million for the Privy Council Office to coordinate, develop, and implement government-wide measures designed to combat disinformation and protect our democracy. The government has also provided $385 million for IRCC and CSIS, plus the—

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

We have to proceed with questions and comments.

The hon. member for Calgary Forest Lawn.

[Jasraj Singh Hallan, Conservative, Calgary Forest Lawn, AB]

Madam Speaker, although I appreciate that the member gave a lot of anecdotes of what Canada should be doing and could be doing, I was wondering if the hon. member would commit to getting whichever ministry he thinks is responsible for that long speech to get to work on the work he just said Canada should be doing. If he is okay with that, can he please tell us which minister he will approach and when he thinks this will take place?

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, in fact, that is the entire big mistake, what the member is doing. It is not the responsibility of one minister; it is a whole-of-government approach. If he had listened to what I was saying, he would know I said that we need a coordinated, comprehensive policy to tackle the new threats Canada is facing, which were not there five or 10 years back.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

Madam Speaker, to pick up on what my colleague from Joliette was saying, there was indeed not much of a connection between our colleague's statement and the subject at hand, which has me wondering if he is tacitly acknowledging that there is nothing in the budget.