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.

[Sophie Chatel, Liberal, Pontiac, QC]

Thank you very much, Mr. Chair.

Today, I am speaking to you wearing pink. Before asking my question, I just wanted to underscore what is happening right now in terms of women's rights. I'm very worried. I will start by quoting Simone de Beauvoir: “Never forget that it only takes a political, economic or religious crisis for women's rights to be called into question. These rights can never be taken for granted. You must remain vigilant throughout your life.”

Thank you for allowing me to express my concerns here.

I would like to thank our colleagues from the Department of Finance for their excellent work in preparing the budget and indeed throughout the year. I see the supplementary estimates will bring changes to the general anti-avoidance rule, the GAAR, to eliminate one of the biggest loopholes.

We did, however, hear the testimony of Professor Brian Arnold at a previous meeting, and he spoke about many other loopholes. Actually, our committee made a prebudget recommendation that consultations on the general anti-avoidance rule be quickly held in order to update the GAAR.

I have two questions for the officials from the Department of Finance.

I see that the measures contained in the budget are not in the bill before us, i.e., Bill C‑19. Will the legislative measures be tabled this summer?

I understand that it is a complex issue and that we need to take the time to do things properly. Will we receive feedback from the consultations this summer?

Will it be possible to have a bill that contains an updated general anti-avoidance rule?

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

Thank you for your answer, which was most clear.

We will be able to check with the Canada Revenue Agency to see what its interpretation of the such an act would be.

During yesterday's meeting, an official from the Department of Finance told us that they were currently working to find a solution to the cashflow problem concerning aircraft aimed at the export market. I understand that it is the government that has to provide a solution, but I have a question for the officials here with us today.

Technically speaking, will the department be able to propose a solution before we vote on Bill C‑19?

[Trevor McGowan]

As I noted, the measure's not contained in Bill C-19. It will ultimately be a decision for the government as to what legislative vehicle the measure would be included in. As I said, it's fairly normal course for some of the more complicated measures to be announced in a budget. Quite often draft legislative proposals are released in the summer for further consultation, and then the measures can be included in a fall budget bill. Again, it's up to the government to decide what legislative vehicle any measure would be included in, but that is a fairly standard path that they can take.

[Greg McLean, Conservative, Calgary Centre, AB]

Okay. Are they on the screen? Are they logged into Zoom? Good. Thank you.

Mr. Chair, my first question is going to be.... I've gone through much of Bill C‑19 here. My first question is from a natural resource perspective.

There's nothing in here for the natural resources sector, and there was a significant amount in the budget concerning the natural resources sector, particularly. I'll dwell on one first of all, which is a new carbon capture, utilization and storage regime. I know that it's been a long time coming. This government has taken a lot of time and it voted down a piece of legislation I put in front of Parliament over a year ago to start getting carbon sequestered in Canada. We're a year later, emissions have continued and we have no regime.

I was expecting something in this budget implementation act on carbon capture, utilization and storage. Can any official can walk me through that? We need certainty, and the industry is trying to work with the government to get a regime that works in making a better environmental outcome for Canadians.

If we can get some certainty and someone can explain to me why there's nothing in this budget implementation act to move this process forward on a tax regime to deal with carbon capture, utilization and storage, I would be very pleased.

That's for anybody.

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

Yes, the issue of it, because I think we flew past it.

I believe that we, as a committee, should have a clear picture of the scope of the study. There are some amounts that are in the budget, and I do not want.... I really want to get on to the show today, which is Bill C‑19.

I would ask if we can defer the approval of the budget to a date when we have some clarity as to how encompassing and which days we will be meeting.

I've had a number of members ask me specifically about that and I've been unable to give them any kind of specificity about our schedule.

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

Thank you, Mr. Chair.

I would like to rise on a quick point of order regarding our study on Bill C‑19. I just want to remind everyone that, as is often sadly the case, this bill contains an enormous amount of information. In fact, it could have been separated into many bills.

While not standard practice, it has occurred quite frequently in the past that some parts of a bill are studied by other committees. This can be through an order from the House following the second reading vote on the bill, or the decision can be made by a committee. Oftentimes, it is the government that requests it.

I am not proposing anything here, I just wanted to make information known to committee members. I would like to remind them that the bill requires careful analysis. It needs to be scrutinized, whether it be by other committees or ours.

There is an entire part on employment and employment insurance, and if this part isn't studied by the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, we will have to set aside some meetings to have a good look at the amendments contained in the bill.

The same goes for the amendments regarding the Competition Act and the Competition Bureau. Will these amendments really be conducive to a competition analysis? Will the Standing Committee on Industry and Technology study the bill? If it doesn't, our committee will have to set aside some time to do so.

The bill also deals with the Special Import Measures Act. Will the amendments made to the act have unintended consequences for our manufacturers in Quebec and in all of Canada? Will our committee or the Standing Committee on Industry and Technology undertake an analysis? If it falls upon our committee, we will need enough time to do so.

The bill also has a section on immigration, amongst other subjects. I just want us to keep this in mind. We can study these aspects after the second reading vote in the House. Otherwise, it will be up to us to make decisions. I don't necessarily have a preference, but if we, the members of the Standing Committee on Finance, are the ones who will scrutinize the whole bill, let us take the time to do an in-depth analysis of each part, because each part could be an act in itself. That way, our committee will have done its work properly.

That was my point of order.

Thank you, Mr. Chair.

[The Chair, Liberal, Peter Fonseca]

I call this meeting to order.

Welcome to meeting number 41 of the House of Commons Standing Committee on Finance.

Pursuant to Standing Order 108(2), the committee is meeting on the subject matter of Bill C-19, an act to implement certain provisions of the budget tabled in Parliament on April 7, 2022, and other measures.

Today's meeting is taking place in a hybrid format, pursuant to the House order of November 25, 2021. Members are attending in person in the room and remotely using the Zoom application. Per the directive of the Board of Internal Economy on March 10, 2022, all those attending the meeting in person must wear a mask, except for members who are at their place during proceedings.

I'd like to make a few comments for the benefit of witnesses and members.

Please wait until I recognize you by name before speaking. For those participating by video conference, click on the microphone icon to activate your mike. Please mute your mike when you're not speaking.

For interpretation, those on Zoom have the choice at the bottom of their screen of floor, English or French. Those in the room can use the earpiece and select the desired channel. I remind you that all comments should be addressed through the chair. For members in the room, if you wish to speak, please raise your hand. For members on Zoom, please use the “raise hand” function. The clerk and I will manage the speaking order the best we can. We appreciate your patience and understanding in this regard.

I request that members and witnesses mutually treat each other with respect and decorum.

I'd now like to welcome today's witnesses from the Department of Finance. Please note that today's witnesses are here to speak about parts 1 to 4 of the bill. On Thursday, the committee will hear from senior officials for part 5 of the Bill.

Members, this is just a quick reminder that witness lists are due tomorrow, Wednesday, by 4 p.m.

Members should have received the budget. I'm just seeing if I can have members' nod of approval for our budget for Bill C-19.

Okay, great.

With that, I understand we are going to go to officials, although I do see a hand up.

Mr. Ste‑Marie, over to you.

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

Thank you, Mr. Chair.

First, I have a comment I want to make. I was really moved by the exchange we just witnessed between the Deputy Prime Minister and Mr. Baker. We obviously support the Ukrainian people too. I can't imagine, even today, that this conflict can last. I'm obviously talking about the Russian invasion of Ukraine and its impact on those millions of people. Our hearts go out to them.

Getting back to the luxury tax on aircraft, the 90% business use criterion is a problem. I briefly mentioned that. There's also the fact that, even if the tax doesn't apply to aircraft that are exported, it's first paid by the manufacturer before being reimbursed on a quarterly basis. The industry reminds us that the delays are often longer. For example, an aircraft must often be modified to the client's satisfaction and must therefore remain in Canada for six more months before being exported. Since most products are exported, the manufacturers wind up with very significant cash flow and liquidity problems.

Does the minister think she can provide the industry and us with specific and satisfactory answers before the vote on Bill C‑19?

Motion That Debate Be Not Further Adjourned

[David Lametti, Liberal, LaSalle—Émard—Verdun, QC]

Madam Speaker, the hon. member indeed reminds me that Conservatives, whether inside or outside the House, seem to have fallen in love with blocking and blockades.

We are here because we have many other pieces of legislation, including a budget. There is not just Bill C-8, which, as we have mentioned, has had 12 days of debate and obstruction and concurrence motions and everything else that the Conservatives can throw up in order to delay it, but also Bill C-7, which we have not debated yet, and Bill C-9, which we have not debated yet. There is Bill C-18 and there is Bill C-19.

There are all kinds of things that we have yet to debate, as well as the budget, and that is because the official opposition simply wants to run out the clock; delay, delay, delay; and use every tactic at its disposal to throw this government off its agenda. Canadians do not want that. They want us to work together.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Thank you very much. My clock says it's 12:08 and I am coming to a conclusion.

It will put money back in the pockets of Canadians even more often by changing the frequency of the climate action incentive payment. The payment will now be paid every three months instead of once a year at tax time.

Lastly, the bill will help the provinces and territories clear their surgery backlogs by providing an additional $2 billion to the Canada Health Transfer.

Mr. Chair, Bill C-19 will make a real difference in the lives of Canadians. It will help to grow our economy, it will create good jobs, and it will help us to continue building a Canada where nobody is left behind.

I hope that all honourable members here will support its swift passage through the House in the weeks to come.

Thank you very much.

Let me just thank the finance officials who are with you there. They have worked so hard on this budget, on supporting Canadians, and I'm grateful to them for their presence today.

I'm happy to answer your questions.

[Chrystia Freeland, Liberal, Deputy Prime Minister and Minister of Finance]

Mr. Chair and members of the committee, thank you very much for inviting me to speak to Bill C‑19, Budget Implementation Act, 2022, No. 1.

I apologize for joining you virtually. I was supposed to be with you in person, but my flight was cancelled this morning as a result of fog in Toronto.

The budget I tabled last month was published during Canada's quick and remarkable recovery from the recession caused by COVID‑19. Canada has experienced one of the fastest employment recoveries in the G7. We've recovered 115% of the jobs we lost during those terrible first months. By comparison, the United States has recovered only 93% of lost jobs.

More than three million jobs have been created or recovered, and our unemployment rate has fallen to 5.3%, its lowest point since we began collecting comparable data nearly 5 decades ago. Our real GDP is 1.5% higher than it was before the pandemic. According to the International Monetary Fund, the IMF, Canada will have the strongest economic growth of all the G7 countries this year and in 2023.

I have some good news: last Thursday, S&P once again confirmed Canada's AAA credit rating. We owe that in part to the emergency support measures we put in place to keep Canadians and the Canadian economy afloat. We also owe it to the remarkable courage and determination Canadians have shown in the past two years.

But we still do have challenges ahead.

Inflation, a global phenomenon, is making things more expensive in Canada too. Snarled supply chains have driven prices higher at the checkout counter. Buying a house is out of reach for far too many Canadians. Russia's illegal and barbaric invasion of Ukraine is directly contributing to higher food and energy prices both here at home and around the world. This impact is hitting the most vulnerable the hardest.

We need to do better as a country at innovating and encouraging small businesses to grow. We need to continue to address the existential threat of climate change, which is why, with the investments outlined in this budget and through Bill C-19, our government is focused on growing our economy and making life more affordable for Canadians.

One of the pillars of our plan is investing in the backbone of a strong and growing country, our people. People need homes in which to live, but Canada simply does not have enough of them.

This budget represents the most ambitious plan that a federal government has ever put forward to tackle that fundamental issue, and it will put Canada on a path to double the number of new homes we will build over the next 10 years.

We also need to make the housing market fairer, which is why, for example, Bill C-19 will legislate a two-year ban on foreign investors. Homes need to be for Canadian families to live in. They cannot be a speculative asset class.

We will also make all assignment sales of newly constructed or renovated housing taxable for GST and HST purposes.

As well—and this is something that I know members of this committee care about deeply—Bill C-19 will help seniors and people with disabilities live and age at home by doubling the home accessibility tax credit's annual limit to $20,000, which will make upgrades such as wheelchair ramps more affordable.

A country and a growing economy also require an expanding labour force. Thanks to Bill C‑19, we'll be making it easier for skilled immigrants, whom our economy needs, to settle in Canada. This will help increase the government's ability to select candidates from the express entry system pool who meet the needs of Canadian businesses.

We will also be investing in the talented and determined workers who are already here and making it more affordable for specialized tradespersons to move here and find jobs.

Under the bill, we propose to establish a labour mobility deduction to enable tradespersons to relocate temporarily to a work location.This measure will grant tax deductions of up to $4,000 per year for transportation and temporary relocation expenses in an effort to reduce labour shortages in the specialized trades.

Bill C-19 will also continue our government's work to ensure that we have a robust tax system in which everyone pays their fair share. Through this legislation, our government will speed up the creation of a public registry of federally incorporated corporations to happen before the end of 2023, two years earlier than planned, to help counter illegal activity, including money laundering, corruption and tax evasion. Let me point out that this is only a first step.

This work is particularly pressing as Canada works hard with our allies through the new Russian Elites, Proxies, and Oligarchs Task Force to target the global assets of Russia's elites and those who act on their behalf.

This brings me to how Bill C-19 will allow the government to cause the forfeiture and disposal of assets held by sanctioned people and entities and to use the proceeds to help the people of Ukraine. Canada is leading the way on this effort as part of a group of allies. We would be the first member of the G7 to take this important step, and I can think of few better ways to pay for the very expensive rebuilding of Ukraine than with the seized assets of Russia's leaders.

To save time, I will quickly state some of the other measures set forth in Bill C‑19. I'm certain these measures will be supported by the members of this committee and my colleagues in the House.

Bill C‑19 provides for the introduction of a tax on luxury motor vehicles, aircraft and boats.

It proposes a tax cut for businesses engaged in zero-emission manufacturing activities.

It will also entitle employees to 10 days of medical leave in certain sectors such as air, rail, road and marine transportation, as well as banking, postal and delivery services.

It will put money back into the pockets of Canadians even more—

[Miodrag Jovanovic]

Bill C‑19 would repeal the current exemption, and that's the result of an agreement reached in 2018 in response to a complaint that Australia filed with the World Trade Organization. The agreement stipulated that the exemption would be repealed by the end of June of that year. The proposal was to repeal it for products made and packaged as of that date. In return, Agriculture and Agri-Food Canada introduced a two-year $101 million program.

[Jake Stewart, Conservative, Miramichi—Grand Lake, NB]

Thank you, Mr. Chair.

Thank you to the officials for being here today.

I want to paint a little picture of where I live—Miramichi-Grand Lake in New Brunswick—and how this budget affects it.

Miramichi-Grand Lake, my riding, is the size of Prince Edward Island. There are probably about two places to plug in an electric car. Most people who order them are waiting a year—and sometimes two—because they can't get them and, of course, the government has basically stood by and watched China grow its ability to produce lithium.

The people where I live drive SUVs, trucks and muscle cars. They have boats. We have a marina. We live on one of the greatest salmon-fishing rivers in the world.

We're not seeing the million jobs referred to here today. It's nice to hear. We don't see them in Miramichi-Grand Lake. In Miramichi, we were a port facility, dating back to the mid-1800s and right up until the early 1990s, and then it slowed, so in recent years, the river hasn't been dredged. A company from Quebec wanted to dump $12 million on their own dime into the port. The were called “Groupe Gagné”. The government's role was to fix the navigational aids for $1.5 million. They said no, which stifled a minimum of 15 to 20 companies that would have been producing wood pellets, lobster, wood products, steel, fabrication products.... Basically, the current government has stifled every economic opportunity we had locally.

Now, with respect to this budget, inflation is currently at 6.7%, but it's 7.4% in New Brunswick, so it's much worse in my home province—as I've said—with no sign of it slowing down.

I don't see immediate relief for Canadians inside of this budget, but I'm going to ask the officials today, what in Bill C-19 is going to address the inflation crisis that Canadians and Miramichi-Grand Lakers are facing today?

Thank you.

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

Would you be able to supply the committee with a list of things that were in the ways and means motion that are also in Bill C-19, as well as other measures in Bill C-19 that were not in the ways and means motion, and under what category they would be captured?

I think the committee would be much better suited to understand how large this bill is, because it's my understanding that it's one of the largest the government has put forward. The government always says that better is always possible, so I would hope that the officials would agree that explaining that to parliamentarians, point by point, would be better.

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

I'm just going to ask that members of the committee bear in mind that, when I ask the same question of every single group to come forward, it is just to make sure that what we were given a technical briefing on is, in form and substance, exactly the same as what is in Bill C-19. If there are differences, I'd like to hear a rationale from the officials. That is a warning just to you and your colleagues.

You did mention earlier in your first response to me, which I had a little difficulty hearing, something about measures in this BIA that were in previous budgets. Could you recite that a little more clearly, please?