The House proceeded to the consideration of Bill C-241, An Act to amend the Income Tax Act (deduction of travel expenses for tradespersons), as reported (without amendment) from the committee.
Chris Lewis Conservative
Introduced as a private member’s bill. (These don’t often become law.)
Third reading (Senate), as of Nov. 7, 2024
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This is from the published bill.
This enactment amends the Income Tax Act to allow tradespersons and indentured apprentices to deduct from their income amounts expended for travelling where they were employed in a construction activity at a job site that is located at least 120 km away from their ordinary place of residence.
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.
The House proceeded to the consideration of Bill C-241, An Act to amend the Income Tax Act (deduction of travel expenses for tradespersons), as reported (without amendment) from the committee.
The Speaker Anthony Rota
There being no motions at report stage, the House will now proceed, without debate, to the putting of the question of the motion to concur in the bill at report stage.
The Speaker Anthony Rota
If a member of a recognized party present in the House wishes that the motion be carried or carried on division or wishes to request a recorded division, I would invite them to rise and indicate it to the Chair.
An hon. member
On division.
Chris Lewis Conservative Essex, ON
moved that the bill be read a third time and passed.
Mr. Speaker, what a great way to start a Monday morning. The House has just allowed me to speak to something that is very near and dear to my heart. I spent a lot of time, blood, sweat and tears on this. It has been a journey. I think it was back in March when I first spoke to Bill C-241, my private member's bill.
I want to thank the folks of Essex who have allowed me the opportunity to stand in the House and represent them—
The Speaker Anthony Rota
I must interrupt the hon. member. There are problems with the interpretation.
I am told that it is now fixed.
The hon. member for Essex may continue his speech.
Chris Lewis Conservative Essex, ON
Mr. Speaker, in all sincerity, every day when I step into the House, it is like stepping onto the ice in the seventh game of the Stanley Cup series. I just want to thank the folks of Essex. I want to, once again, thank Tomi Hulkkonnen from the Carpenters Union and Karl Lovett from IBEW for helping me script the bill and for giving me guidance and understanding of what it really means in support for our skilled trades folks.
I also want to take the opportunity to thank the member for Lambton—Kent—Middlesex, who seconded this bill and who will be speaking to it later on.
Before I dive into the bill, my dearest condolences to the Gaffan family back in Kingsville. Jim Gaffan was the mayor of Kingsville for a long time. He passed away just a couple of weeks ago. He was a staple in the community as a local barber. If people needed to know something, they would go to Gaffan's Barber Shop. Mr. Gaffan was a man whom I very much looked up to. He was a man of the people, and I hope to at least bring some of his happiness forward. Again, my condolences to his family.
Bill C-241 is an act to amend the Income Tax Act with respect to deduction of travel expenses for tradespersons. As I have said before, I like to call it the “fair travelling tradespersons bill”. It went to committee. I understand we did not break a record, but I believe it to be true that we were very close to breaking one. Today, I get 15 minutes to speak, but in committee it passed in 17 minutes. Therefore, if I draw this out for two more minutes, somehow we probably would have broken a record.
The reason is that there were no amendments to the bill. This is such a simple bill. The only frustrating thing about this is that because it is so simple, because it is the right thing to do and because it has the support of the majority of the House, I am talking 15 more minutes, 15 more minutes that we are not looking out for our skilled tradespersons.
I was caught at the Billy Bishop Airport for an extended four hours on Thursday night on the way home. I ran into a young man named Colin. He lives in the Windsor area and travels to southern Alberta for work because he can make a lot more money in the skilled trades to feed his family back in Windsor. I asked him how long he had been gone for. He said it had been 30 days and he was excited to get home to see his young daughter. I said, “Wow, you had to work for 30 days.” He said, no, that he worked for 10 days, then he was off for two, then he worked for 10 days and was off again for two days.
I realized it is a long way to travel, but I asked him if he was able to get home to see his daughter. He would have loved to have gotten home to see his daughter, but he could not afford the cost of the flights. When he would go home after 30 days, the money for that flight was money that would pay for her diapers, her pablum, her medicines like Tylenol. He said that Facetime was as good as I got.
If that real story does not tear at the heartstrings of each and every member of the House and to understand why Bill C-241 would be so impactful for our skilled tradespersons who travel across the country to build our infrastructure, quite frankly, I do not know what would.
If that story does not get the House, maybe this one will. I was again at Billy Bishop Airport around October or November of last year. I ran into a gentleman named Andrew. He works in the mines in Timmins. He asked me for a picture with him. I do not know why. My wife does not even want pictures with me. I had a good conversation with this gentleman. He does not have a family but he has a girlfriend. He actually Facetimed his girlfriend while I was there and introduced me as her member of Parliament. I did not think too much about it. Shame on me
When I arrived at Billy Bishop Airport to fly back to the House for the first week, a young woman came up to me and said my name. I asked her how she was. She wanted to thank me for my private member's bill, which she hoped would go through. She then asked me if I knew who she was. I told her she looked familiar but I was not too sure. That is when she told me she was Andrew's girlfriend and that she was on her way to Timmins. I remembered that I had taken a picture with him. I asked her if Andrew could not get home and she said that it would cost him too much so she decided to go see him.
These are the real stories of the ones who we expect to build our roads and energy system, to turn our economy and get that engine moving again to make our country green. They are the very ones who sacrifice so much, but we forget about their loved ones. If we want to really incentivize our skilled trades, it is as simple as giving them the opportunity to be back with their loved ones.
We continue to talk about the lack of homes or the shortage of them across our country. We know that the cost of a house is out of this world, but that is purely because we do not have enough. I am quite sure that all 338 members of the House have heard this time and again from their business owners, that if we gave them more people, they would put out twice as much product. Quite frankly, they do not have the people.
We are far past the stigma of being in the skilled trades. We now understand that it is not only okay to be a plumber, a boiler maker, an ironworker or an electrical worker but it is a fantastic living that brings home a lot of money for families and puts tons of food on the tables of Canadian families. Now that we are past that the next question is how we get those people to the jobs. How do we give the support to those folks to get them to those jobs?
Right before Christmas, I travelled to Nova Scotia. I met with people from CANS, the Construction Association of Nova Scotia. They said to me that to build roads and hospitals, all these projects, they needed people. They said that for the first time Nova Scotia was not exporting its folks; it needed to import skilled trades. I hear this across the country. They said that my private member's bill, Bill C-241, which is not mine but the people's bill, would get people to the right place at the right time.
I think about Windsor. I think about the Gordie Howe International Bridge and the amazing workforce that is building that bridge. At the same time, a $5-billion battery plant is being built in Windsor. As such, when I met with representatives of the IBEW in Windsor, they said that they would need thousands of people in Windsor to build this plant, let alone the bridge.
The point is that this is as simple as doing what each and every one of us talks about all the time: building our economy, building our infrastructure and being fair.
Recently, I met with representatives from WEST, which I had never heard of before. It does some pretty unique and amazing work based in Windsor. It trains mostly young women, a lot of them immigrants, on skilled trades. By the way, it is the only organization of its kind in Canada. I asked where they go once they are trained, and they said that they try to find them a job locally. I said it cannot be hard to find them a job locally. They said it is certainly not hard to find them a job locally, but many of them have roots and family in other parts of Canada that they want to go to, so if the job is here, they cannot be with their family. Kudos to WEST for doing what it is doing and recognizing the potential of our immigrants, specifically women.
I really want to stay bipartisan here, because I believe that through working together in the House we can do something really special and unique. I want to thank the Bloc Québécois and the New Democratic Party at committee for supporting this bill going forward.
I realize that there has been a tax deduction for mobility expenses by the Liberal Party for $4,000. I have heard that time and time again, and it is a great start. However, as I mentioned before, a businessperson can jump on a plane in Windsor and fly back and forth to Calgary, Vancouver or St. John's, Newfoundland as many times as they want and write off those expenses, such as hotels, meals and travel. To suggest that a skilled tradesperson can write off only $4,000 of travel expenses for maybe a couple of months' worth of work is putting a price on the heads of those in our skilled trades that is totally unacceptable and certainly does not go far enough.
In closing, this is a common-sense bill for the hard-working, common people. It has been a year-long journey, as I mentioned at the beginning of my speech, and I now realize the number of people whose lives and families would be impacted by this bill. It is so far-reaching and so unique. Other parties have introduced very similar legislation in the past, and now is the time to finally get it done. Let us bring it home. Let us expedite this process so that we can get the proper folks at the proper place fairly.
I will end this speech the way I ended my last one, because I truly believe it in my heart of hearts: If it is good enough for members of Parliament to write off their travel expenses, their apartments and their meals, then it better darn well be good enough for our skilled trades folks.
Income Tax ActPrivate Members' Business
February 13th, 2023 / 11:20 a.m.
Kingston and the Islands Ontario
Liberal
Mark Gerretsen LiberalParliamentary Secretary to the Leader of the Government in the House of Commons (Senate)
Mr. Speaker, I am sure the member knows that there was a very similar budget item in the budget implementation act of 2022, where measures very similar to what he is proposing in the bill were addressed. I am wondering if he can tell us how the bill differs from what was in the budget implementation act.
Chris Lewis Conservative Essex, ON
Mr. Speaker, it differs in a couple of ways. If we look at the kilometres and the distance some have to travel, I believe that in the budget implementation act it is 150 kilometres, but in this bill it would be 120 kilometres. More than that, what I ended my speech with was quite simply that $4,000 puts a price on the heads of those in the skilled trades. This bill has no limit, so the more they work, the more money our skilled trades are putting back into our economy, and we are not handcuffing these same folks from going to work.
Xavier Barsalou-Duval Bloc Pierre-Boucher—Les Patriotes—Verchères, QC
Mr. Speaker, I thank the member for Essex for his work. He has introduced a really interesting bill, and, as he pointed out in his speech, the Bloc Québécois has decided to support it.
I want to acknowledge his work in particular because it is not often that the Conservatives side with workers. I think it is important to highlight it when it does happen.
Other than this idea of helping our tradespeople with their travel expenses, I would like to know whether the Conservatives have any other ideas to help workers. It is important that the legislation we pass help those who need defending in Parliament, the ordinary people. We need to help working people, not big business and those who are lining their pockets and are already privileged in our society.
I would like to know what ideas the Conservatives are going to come up with next to support the people that we need to support, those who are not the privileged.
Chris Lewis Conservative Essex, ON
Mr. Speaker, I thank my hon. colleague for his support. I remember him speaking to this bill back in March.
In terms of fresh ideas, if I was so lucky as to have another private member's bill, with the next one I would make darn sure that the folks coming in from overseas, like Finland, who have these skilled trades and who are literally stuck in our system, are allowed into Canada to join our skilled labour force. That is one idea. We have lots of folks from other countries who have been stuck in the system for years. Let us give the support to our immigration folks and get these skilled trades into Canada. That would be the next one.
Gord Johns NDP Courtenay—Alberni, BC
Mr. Speaker, we are grateful to see this bill come forward. Of course, as the member knows, New Democrats have been fighting this injustice that targets tradespeople and apprentices on deducting their travel expenses for many years. In fact, we have tabled this bill five times. This is a no-brainer. I am surprised that the member did not tell Colin, whom he met at the airport, that the Conservatives actually voted against this bill when it came up for a vote in 2013.
Why have the Conservatives suddenly had a change of heart? Now they support those in the trades and apprentices in ensuring that they get fair treatment when it comes to tax deductions when travelling over 120 kilometres. Why has it taken them so long and why did they not support the bill when Chris Charlton tabled it and it was voted on in 2013?
Chris Lewis Conservative Essex, ON
Mr. Speaker, obviously I was not here in 2013, so I will not speak to that. What I will speak to is keeping my promise to Colin. I take no shame in not telling something to Colin. When this gets passed in this House, I will tell Colin that this House worked for him, to go home and hold his daughter.
Randy Hoback Conservative Prince Albert, SK
Mr. Speaker, I think this is such a great motion. There are so many times when we come to the House of Commons and listen to a lot of speeches that have zero impact for the people on the ground back in the riding. This is one example where it actually does have an impact back in the riding.
Can the member tell me how tradespeople in Saskatchewan will benefit from this type of legislation?
Chris Lewis Conservative Essex, ON
Mr. Speaker, it is not only in Saskatchewan that people will benefit. Ironically, I was born in Regina, Saskatchewan, so it is near and dear to my heart. Coal-fired plants are being shut down in the Regina area and these skilled labour folks are going to need a home. In the event they decide they cannot get to another job right in Saskatchewan, they can get across the country from coast to coast to coast with their travel expenses paid. It gives them another opportunity, a great opportunity.
Income Tax ActPrivate Members' Business
February 13th, 2023 / 11:25 a.m.
Outremont Québec
Liberal
Rachel Bendayan LiberalParliamentary Secretary to the Minister of Tourism and Associate Minister of Finance
Mr. Speaker, I appreciate the opportunity to participate in this debate on Bill C‑241.
As my hon. colleagues know, this bill would amend the Income Tax Act to allow tradespeople to deduct travel expenses if their job site is far from their place of residence.
Our government is already well aware that the health of the Canadian economy depends on the ability of rapidly growing sectors and businesses to attract the workers they need to grow and succeed. That is why we have already created a new labour mobility deduction in budget 2022. Canadians will be able to file their income tax returns for 2022 starting next week.
As of next week, when they do file their tax returns, Canadians will be eligible, for the first time, for a new deduction of up to $4,000 in eligible travel and temporary relocation expenses through our labour mobility tax deduction for tradespeople.
Our government shares the very same goal as the member for Essex. The labour mobility deduction that is now in place by this government is carefully and effectively targeted at achieving its objective. It provides greater clarity than Bill C-241 on the definition of core concepts as well. For example, Bill C-241 does not define “travelling expenses” or “construction activity”. It also uses the term “tax credit”. I have looked, but I have not seen that as a defined term in our tax laws.
The bill would also introduce fairness issues between tradespersons and indentured apprentices and other employees. That is because it would provide the former with tax recognition for long-distance commuting, while considering it a non-deductible, personal expense for the latter group of people.
The bill also requires no minimum period for relocation, places no limit on the number of trips or the amount of expenses that could be deducted in a year, and makes no allowance for trips that might span multiple tax years. Unlike Bill C-241, the labour mobility tax deduction for tradespeople that our government put in place includes safeguards that contain its scope and cost and ensure that it provides fair and targeted support where it is needed most.
The Parliamentary Budget Officer has estimated the incremental cost of Bill C-241, taking into account the fact that an existing deduction is already in place for the same purpose. The PBO's analysis reflects the fact that if Bill C-241 is passed, taxpayers will have to choose between the two options. This would result in substantially similar deductions being available to taxpayers for the same purpose and, in turn, would likely result in administrative challenges for the Canada Revenue Agency and confusion for tax filers, particularly given that the 2022 tax filing season will begin soon, as I mentioned at the outset.
Bill C-241 has no cap and a slightly different threshold for distance, and the PBO estimated only a small incremental increase in support as a result of this new measure, but this would actually come at a prohibitive expense in terms of introducing ambiguity and confusion for tax filers and administrators.
At the same time, by delivering targeted and effective support to help offset labour mobility expenses, our labour mobility tax credit is building on other important measures. Let me take everyone through them very quickly.
The moving expenses deduction, for example, recognizes costs incurred by workers who permanently move their ordinary place of residence at least 40 kilometres closer to their place of business or employment. There is also the special and remote work sites tax exemption, which allows employers to provide board and lodging benefits to employees on a tax-free basis at these work sites. There is also the Canada employment credit, which recognizes work-related expenses in a general way. For the 2022 tax year, this employment credit provides a tax credit on employment income of up to $1,300.
In budget 2021, we also took targeted measures to support apprentices by allowing them to acquire work experience and to make sure that employers can choose from a pool of skilled workers.
In the same budget, we allocated $470 million over three years, starting in 2021-22, to Employment and Social Development Canada to establish a new apprenticeship service.
This service helps 55,000 first-year apprentices in the red seal construction and manufacturing trades access opportunities for small and medium-size businesses. Employers can receive up to $5,000 for first-year apprenticeship opportunities to pay initial costs, including wages and training costs.
Moreover, to promote diversity in construction and manufacturing trades, this incentive is doubled to $10,000 for employers who hire under-represented individuals, including women, racialized Canadians and persons living with disabilities.
To prepare skilled workers to enter the job market, the Government of Canada spends approximately $90 million a year to provide 60,000 grants to support apprentices.
In conclusion, the labour mobility tax deduction achieves the objectives of Bill C-241 without its risks or shortcomings, and there is really no need to take my word for it. One need only listen to Canada's Building Trades Unions, CBTU, which stated, “Budget 2022 included a historic win for Canada's skilled trades workers with the inclusion of the Labour Mobility Tax Deduction for Tradespeople.” It also said, “Canada's Building Trades Unions is proud of securing tax fairness for skilled trades workers through the Labour Mobility Tax Deduction for Tradespeople (LMD).”
With that goal achieved, Bill C-241 is not only problematic but also redundant. I would therefore encourage the House to withhold its support for this bill in favour of allowing the labour mobility tax deduction to support Canadian tradespeople and apprentices as they begin to file their taxes in the coming weeks.
Xavier Barsalou-Duval Bloc Pierre-Boucher—Les Patriotes—Verchères, QC
Mr. Speaker, although I had the opportunity to do so earlier, I would like to begin by once again congratulating the hon. member for Essex for Bill C-241. This bill was worth introducing and debating in the House, and I think it is important, since it will give us an opportunity to discuss the reality of tradespeople, a reality we do not discuss enough in the House.
We address all sorts of theoretical questions in the House. We talk about families struggling to make ends meet, and it is important that we do. We also talk about the ultra-rich. However, we do not talk enough about tradespeople, the middle-class, the people who work so hard to build our country.
I will therefore take this opportunity to speak in more detail about a tradesperson I know well and who was born on July 15, 1941, in Hochelaga, Montreal. He was one of seven children, so he had six brothers and sisters. He did not grow up in Hochelaga, but in Pont-Viau, Laval, because his father managed to get a job at Frito-Lay. Chips lovers will recognize the name.
His father was a labourer and had seven mouths to feed in addition to his wife’s and his own. That requires a lot of work. At the time, working-class families were large, and this was a family of nine. Families lived in small apartments, with one, two or three bedrooms. Ultimately, they took what they could get. Children did not have their own room: there was a room for the girls and a room for the boys. There were a lot of people in each bedroom.
This skilled tradesperson got married later on, on June 30, 1962. Let us get back to the issue before us, skilled trades. He began practising his trade in 1956 at the age of 15, and worked hard on construction sites. He and his wife had four children, only three of whom reached adulthood. He found time outside his work hours to take care of his children and to be a hockey and baseball coach. He worked for more than 40 years on construction sites as a skilled tradesperson before retiring in 1997. He then continued to work as a plumber for more than 10 years.
The person I am talking about is my grandfather. I was well aware of his situation, since he was still a tradesperson when I was a child. When I went to his house, even if I was not supposed to, I would go into his garage, a real treasure trove. It was incredible to see all the tools and equipment he had. I also remember the smell of oil and iron. It was amazing.
My grandfather worked on many large construction sites. The Conservatives are going to like this: He worked on the many gas pipelines built in the 1950s, 1960s and 1970s. He also worked in the petrochemical facilities in Montreal East. At the time, we needed advanced technology and facilities to be able to put gas in our cars. He worked on a number of hospital construction projects across Quebec, and built high-rise housing units on Île-des-Sœurs.
He also worked on a major construction site that had an impact on Quebec, and many people remember it in both a positive and a negative way. It was Montreal’s Olympic Stadium, a huge project that cost a lot of money and took us a lot of years to pay for. However, it was a symbol of pride at the time, since we were hosting the Olympic Games in Quebec, in Montreal, which was an extraordinary feat. My grandfather worked on the Olympic Stadium as a skilled tradesperson.
He also worked on the Port of Montreal facilities, which, with the growth of Montreal, always had to be expanded. Workers were needed to build the infrastructure and make sure it would withstand the passage of time. He also worked at the Saint-Jean-sur-Richelieu military base.
I listed a few projects to show that tradespeople work all over the place on any number of projects. These are assets and infrastructures that will remain standing for a long time, and people will be able to use them and rely on them even after I am dead.
Plumbers and other skilled tradespersons do not have it easy in their day-to-day work life. For instance, they have to move large and heavy pipes made of various materials such as concrete, steel, iron or copper. PVC pipe is more common these days, although that has not always been the case. It took strong arms to carry them. We are not talking about three-foot pipes, either. They were really something. Tradespersons have to move things like pipes, toilets and sinks. Anyone who has ever carried a toilet or sink knows how heavy they are.
These people do physically hard work and they generally work outside. Think of the people who build high-rise apartments. Workers on construction sites sometimes work inside, but they often work outside, sometimes at -40°C. The work still has to be done, even if it is freezing cold. Workers get used to it, and they work hard.
They do not just work in winter. There is also summer. When it is 30°C or more and they are working indoors, in an enclosed space, with the boilers running, and they need to run pipes and the welding machine adds even more heat, that is even worse. The workers have to put up with that kind of heat while they work, and it is not easy.
Welding in a heat wave is not the easiest thing to do. We do not say it often enough, but sometimes there are problems on the construction site. Maybe the engineer made a mistake with the blueprints, or some delinquent snuck overnight and had fun taking apart half of what was built. Then workers have to redo the work that took them weeks to do in the first place.
Another aspect of the plumber's trade is that they bring their own tools to the site. Sometimes the tools are stolen, so they have to buy new ones. That is an expensive proposition. To do good work, they need high-quality specialized tools.
Take, for example, replacing old pipes. The pipes in our houses transport water, and the pipes that run from our toilets and showers contain hair and feces. When a pipe is removed, what is inside may come out the ends. Sometimes, workers go home smelling bad, with traces of pee and poo on their clothes.
The job is not always a pleasant one. Sometimes, workers need to work in four feet of water or in spaces so tight it is difficult to crawl through. Pipes need to be changed even if there are insects and rats down there.
The working conditions are not always ideal, but the job is really important, and it makes a difference. It is work that needs to be done, and it is vital to every structure.
Every time we turn on the tap, water comes out because a plumber was there before us. Every time we go to the bathroom, we can do so comfortably because a plumber was there before us.
Sometimes there are time constraints, and workers have to work overtime. They do not necessarily work a 40-hour week. Sometimes they work 72 hours in a row because the work needs to be done. They work, they are tired, they do not see their children. They leave early in the morning when it is still dark out and the children are still in bed.
That is the reality of tradespeople. They come home filthy in the evening, with dirt under their fingernails, and they still smell even after they have washed two or three times. They cut themselves, burn themselves and suffer workplace accidents, but they still have to work, so they get over it. Sometimes, they damage their health.
My grandfather is a hero in my eyes. He is a tradesperson. He helped build Quebec. Now others are following in our forebears' footsteps. They are building the Quebec of tomorrow.
Bill C-241 is for these people. I think that the people who built Quebec would have been happy to see such a bill. They would have felt valued. They would have felt that there are members of Parliament who are listening to them and asking what they can do to help them in their work and their lives, based on their reality, so that their difficult and demanding work might be better compensated, valued and recognized. Just talking about it in the House today is a major step, and for that, I would like to thank the hon. member for Essex.
Obviously there are all sorts of considerations at play. Earlier I mentioned all of the construction sites my grandfather worked on. Most of them were in the greater Montreal area.
I also have another grandfather who was a lineman and who worked on almost all the hydro dams in Quebec. He worked hard, in cold weather and sometimes difficult conditions, deep in the woods.
These people built Quebec, and I am very proud of them. We need to talk about them and stand behind them.
That is why the Bloc Québécois will support Bill C‑241. Business people taking the jet or driving a Mercedes or a Cadillac should not be the only ones entitled to deduct their travel expenses. I think that ordinary workers who commute far from home for work, who work hard and earn their paycheque, should also be eligible for and entitled to deductions.
We stand behind our workers, and I thank the member for Essex again for his bill.
Matthew Green NDP Hamilton Centre, ON
Mr. Speaker, it is indeed a pleasure to join the House today from Hamilton Centre in support of this bill at third reading. I extend my sincere congratulations to the hon. member for Essex. We had quite some time joking around about the fact that he got to be an honorary New Democrat while presenting this private member's bill, Bill C-241. I think he even promised to wear an orange tie, although I am not quite sure that I have seen that in the House, but I have done my best today.
I wanted to make sure that as New Democrats we get a chance to set the record straight today. This bill has been proposed five times since 2006. The then hon. member Chris Charlton for Hamilton Mountain introduced this bill in 2006, 2008 and 2013. In fact, she had introduced Bill C-201 in 2013, which was crushed by a Conservative majority. I will give the hon. member for Essex the benefit, because I know from his remarks that he was not elected in 2013. However, I will note that the Conservative leader, the hon. member for Carleton, voted against it.
We, as New Democrats, continued to fight alongside the building trades, and in 2021 this was introduced by my dear friend, the always honourable Scott Duvall from Hamilton Mountain, and of course myself. In 2021, one of my first orders of business, and a promise I made to our Hamilton-Brantford Building Trades Council and all of its affiliates, was that I would pick it up and run with it in Bill C-222.
As pointed out by the previous Liberal member, there is only a small difference between what the government has introduced and what this bill provides with respect to distance. Members may recall in the previous reading that this was an issue I brought up. It was clear that in our bill, Bill C-222, we had suggested that the 120-kilometre radius was too far. It would have excluded too many people, particularly those who had to commute through hours of traffic in the GTA. In our bill it was 80 kilometres. If the Parliamentary Budget Officer had run those numbers, he would have seen that more people could have taken advantage of the deduction in our proposal. One of my regrets is that it was not carried through during its time at committee.
I acknowledge and give credit where it is due to the organized labour of Ontario. These are the Building and Construction Trades Council of Ontario, Canada's Building Trades Unions, the Hamilton—Brantford Building & Construction Trades Council, the people I worked with and the people we are all familiar with, such as the recently retired Pat Dillon here in Ontario. Throughout his entire 20-year career he worked on this. He was dogmatic across all parties that it was something that had to happen because of the general fairness imbued in the bill and the differences identified among the corporate, the Bay Street and the management classes of the country. They got to travel around the world and deduct all of that. That privilege is not extended by the CRA to those who actually build wealth and generate true value in this economy, which is the working class.
I want to make a correction, and will do so even perhaps to my own embarrassment, but it certainly needs to be said in the House. It has been said many times that MPs get to write off their travel. That is not true. An MP's travel is covered by our members' budgets, so it is a very different scenario. I hope that we would ensure that what is good enough for us would be good enough for the working class.
I call again for the same spirit from our new-found socialist Conservative friends who are looking to extend these rights and privileges to the working class. Keep that energy up when it comes to things like dental care and pharmacare. These are things that we, as members of Parliament, have the privilege of receiving and some of us for our entire lives. Let us be clear. There are members in the House who speak about work and working class issues in a completely abstract way, because they have never actually worked in the private sector. That is a fact.
While I do not know the history of my friend from Essex, I am grateful that in his trips to the airport he was able to engage in a dialectical materialism with the working class. It identified that the real-world conditions of the working class and the contradictions of the class considerations provide a general unfairness in how we treat our blue-collar workers compared to the white-collar management class in this country. A person, such as a real estate lawyer or a developer, can fly across the country and write all of that off. However, the worker who actually builds that wealth and who constructs the actual material does not get the same consideration. It is indeed one of the inherent contradictions of our tax code and our general economy.
To go further, to talk about the exploitation of the building trades workers, the hon. member for Essex brought up the notion of affordability in housing. This is an issue that comes up in my community when I am talking to folks about the issues of their housing costs and how far away their ability is, through their wages, to purchase the things they make. This is indeed a perversion of the capitalism and the impacts of capitalism in this country that divorces the working class from the end product of their labour. It is an alienation of the working class. It is an estrangement of labour.
In the example I used, the building a house metaphor, while the cost of building the house varies between provinces and because of factors like materials, currently the housing construction costs range between $120 to $250 per square foot. If we were to average this out, it would be about $185 per square foot or approximately $370,000 to build a 2,000 square foot home in Canada. That is twice as much, and sometimes three times as much, as the average market cost. StatsCan listed the average Canadian house price in 2022 at approximately $704,000.
The average salary I could find of a union carpenter is about $70,000. That means it is 10 times as much, or 10 years' worth of work, for the person who builds the house to be able to purchase the house. The surplus value of their labour goes to people who have never swung a hammer in their entire lives. It goes to the banking class, the Bay Street class, the developer class and those who go to Doug Ford's family weddings and pay to increase their access to construction within provinces like Ontario. The money and the obscene profits that are made never make their way to the working class of this country.
It is the ultra-elite and the well-connected, those who have political ties, those who would seek to keep wages low and recall the Bank of Canada calling to keep the wages of workers low while the costs continue to run amok. It is shareholders, private investors in the investing class in this country, who are the ones taking the surplus value of workers' wages. It is not because workers are fighting for higher wages.
Under this economic system of private ownership, society only has two classes. These are the property class, or those who have access to capital, and everybody else. The workers are suffering from not only impoverishment but also from exploitation and estrangement from their work. That is why this very meagre private member's bill, Bill C-241, is literally the least we can do in the House to acknowledge that there is a general unfairness in our tax system.
I hope the hon. members from the Conservative Party, who crushed this bill some 10 years ago, who now have found their way in supporting this private member's bill, will keep that same energy up and understand it is the working class of this country who creates the value. That is who we should be prioritizing in the policies of the House.
The Deputy Speaker Chris d'Entremont
The member for Lambton—Kent—Middlesex is rising on a point of order.
Lianne Rood Conservative Lambton—Kent—Middlesex, ON
Mr. Speaker, while I think my colleague from Hamilton Centre would like to admit he wants to say that the member for Essex is in the NDP, he is a proud Conservative. However, I believe he said he would wear an orange tie to the vote.
The Deputy Speaker Chris d'Entremont
That is not a point of order, but it is a point well taken.
The hon. member for Lambton—Kent—Middlesex.
Lianne Rood Conservative Lambton—Kent—Middlesex, ON
Mr. Speaker, skilled trades are a key component of Canada’s workforce and are vital to the strength of Canada’s economy. Skilled tradespeople are critical in maintaining essential sectors, like our health, water, electrical and food systems. They literally build bridges and critical infrastructure.
The demand for skilled tradespeople is high. It is expected to remain high over the next decade or more as Canada’s economy recovers from eight years of the Liberal government. For far too long, many blue-collar private sector workers have found themselves to be an afterthought of politicians in Ottawa.
Our country is facing a shortage in over 300 skilled trades, and the numbers are showing that this will only get worse. Each job that is unfulfilled is an uncollected paycheque that could help a family get ahead.
By 2028, Canada will need to have over 700,000 new tradespeople in place. Some of the challenges that we face today are very different from the challenges we will face in the future and are different from what our leaders faced decades ago. We will have new problems and we will need new solutions.
Action must be taken to address the concerns regarding the shortage of skilled tradespeople, which is far beyond the scope of the bill that we are discussing here today, just as action must be taken to fix the concerns of those who proudly work in the trades today.
That is why we are supporting Bill C-241. Every step to promote trades and make the environment less cumbersome and more appealing to new entrants is a step in the right direction. We must support Canada’s workers and the unions that represent them. The inability to do so would hold back local businesses from growing. It would delay roads, public transit and schools. It would make it harder to improve the health care system and would contribute even more to the rising cost of living that families are battling every day.
After generations of being left behind by the government, it is time to earn trust and build the bridges that will get the bridges built.
During the last election campaign, many residents in my riding spoke to me about the importance of supporting Canadian skilled tradespeople. One simple way that we can do that is by allowing travel expenses to be tax deductible.
Why is this a good first step? The answer is very simple. Many of our skilled tradespeople live and work in rural and remote communities. One of my colleagues has made the suggestion of making the range 120 kilometres because, for some people in my riding, it can take them an hour and a half just to get from their home to the shop to get their trucks. Given that my riding is over 5,000 square kilometres, I can say it is actually a very conservative estimate of how long an individual may have to travel to get to work.
In fact, I spoke with one person who worked as a welder in Arkona, which is a small town in a fairly central agricultural community. They told me it was routine for them to get up at 4 a.m., drive an hour from their home to the shop to load up their truck and prep their crew. They drive another hour and a half south to the morning job site, and then drive an hour northeast for the afternoon. After a long and tiring day, they would drive another hour back home to repeat a similar schedule six days a week.
We are talking about support in this bill for those who work some of Canada’s toughest jobs and who are the most essential workers.
Let me put this in perspective compared to other professions where people can receive tax deductions for travel for their jobs.
The Dewalt or Milwaukee white-collar tool salesperson, who has to travel to remote areas to sell the tools to the building trades workers, will get a government-paid tax credit for their travel. However, the blue-collar IBEW electrician or the UA pipefitter, who has to travel to the same remote job site to put in long hours working and using those same tools, does not get any tax relief from the government for their travel.
Tradespeople work very hard to support their families and have to put forward significant out-of-pocket expenses to be able to perform and remain competitive. The government needs to do more to support our nation’s working men and women. Those are the men and women whose jobs are making them have to shower at the end of the day, who are raising families and who are building the future of Canada.
Inflation and the cost of living have taken their toll on tradespeople just as much as, if not more than, they have for nearly every Canadian. Let us take a quick look at the price of gas for someone, like that welder, who travels 400 kilometres in a day.
The average price of gas is around $1.40 per litre right now. Like most tradespeople in rural Canada, they drive a truck. For those members across the floor who have urban ridings, driving a truck is absolutely necessary for rural tradespeople. It is actually an essential tool for the performance of jobs, especially in our rural areas, not something that can be easily phased out to suit the agenda of the finance minister’s friends in the WEF.
This person's truck has roughly a 700-kilometre range, so they need to buy gas twice a week or more. With a 120-litre tank, they are paying over $250 a week or more in gas, and about $16 of that is carbon tax. I think it quickly becomes clear to what a great extent a travel deduction will amount to large savings that will keep these tradespeople in business. If only we could remove some of the other non-essential impediments.
A similar travel deduction is already available for corporations and self-employed workers in other industries. Passing Bill C-241 would equalize the playing field and incentivize tradespeople to take contracts farther from home, which would be beneficial for smaller communities that have trouble attracting skilled labour. More tradespeople travelling would help generate more spending, which is especially beneficial for smaller and remote communities.
Many tradespeople travel long distances for work, and I am talking about leaving their homes and flying somewhere, sometimes even to another province, across the country or to northern areas to get to a job site. Often they are gone from their families for long periods of time, sometimes even months at a time. I cannot imagine being away for months at a time without being able to see loved ones.
Those of us sitting in the chamber know what it is like to leave our families to come to work for just a week. Imagine leaving our families for weeks. I know I would miss my family if I were gone for weeks, and I know from talking to some of these workers over the last number of weeks that it is a hardship on them. It is a struggle for their families to be apart. Sacrificing time with their kids, spouses or partners in order to try to provide good incomes to support their families can be very difficult, but they make sacrifices every day.
Imagine someone being responsible for paying their own transportation, accommodation and meals to get to a job site, while having to travel with their own tools. There is no other option to receive a tax credit to help offset any of these travel costs. Workers are more likely to take jobs closer to home, and not necessarily in their trades, when they are not compensated.
Travelling as a tradesperson is extremely hard on families. A tradesperson would be able to use some of their tax credit to fly home to see their family, for instance for a long weekend, or even fly their spouse and family to be with them for a period of time in the town where their job site is. Imagine the economic spinoff of that in those small towns.
This bill is not controversial. This bill would help keep families together. It is a pro-worker, pro-jobs, pro-paycheque and pro-worker-mobility bill, all of which is needed to keep Canada going. I am pleased to see that this drive is being acknowledged and even supported by other parties in the chamber.
Despite our differences, I think we all want to keep Canada going and we all want to do what is best to support our Canadian workers. We want to encourage young people to follow their passions, enrol in skilled trades and move beyond the tired mentality that the only way to succeed in life is to acquire multiple degrees.
Do members know that a Red Seal certified tradesperson makes over $68,000 a year? With years of experience, depending on available jobs, they can make well over $300,000 a year. That is comparable to or even exceeds what is expected from a university master's degree. Unfortunately, only one in 10 high school students is considering a career in trades. Something needs to change, and I look forward to a productive discussion about what can be done to make improvements.
Starting with the bill we are debating today, Bill C-241, I have heard, from the NDP side, some suggestions that the travel distance be lowered to 80 kilometres. From the Liberal benches, the ask has been made to have the bill include greater deductions for tools and equipment. I have heard a number from the Bloc say they will take the bill as is and support it.
All of this is fantastic, not only for workers but also for my colleague, who I know has been very open and transparent in his excitement. I will echo his excitement on behalf of my constituents. This bill would have a tremendous impact on tradespeople and their families. Let us roll up our sleeves, get it done and bring it home.
The Deputy Speaker Chris d'Entremont
The time provided for the consideration of Private Members' Business has now expired, and the order is dropped to the bottom of the order of precedence on the Order Paper.
The House resumed from February 13 consideration of the motion that Bill C‑241, An Act to amend the Income Tax Act (deduction of travel expenses for tradespersons), be read the third time and passed.
Andréanne Larouche Bloc Shefford, QC
Mr. Speaker, I rise today to speak to Bill C‑241, which seeks to amend the Income Tax Act to allow tradespersons and indentured apprentices to deduct from their income amounts expended for travelling where they were employed in a construction activity at a job site that is located at least 120 kilometres away from their ordinary place of residence.
As the granddaughter of a mason and niece, sister and sister-in-law of carpenters, this is a sector of our economy that I am rather familiar with.
From the outset I would like to say that the Bloc Québécois is voting in favour of Bill C‑241 and I will be talking about it today first from the perspective of the construction industry, then from the perspective of the current economic context and finally in the context of the labour shortage.
First, let us not forget that this is about one of the recommendations from Canada's trade unions that represent more than half a million construction workers in Canada who are members of 14 international unions. These people work in more than 60 trades and professions and generate 6% of the country's gross domestic product.
Salespeople, professionals and various other workers in different sectors can already claim a tax deduction for the cost of their travel, meals and accommodation. It stands to reason that these expenses could be claimed by skilled workers whose job sites are located in a different region or province from their primary residence. It is a question of fairness.
Growth rates and infrastructure investment often vary from one region to the next, and this results in labour shortages. The labour shortage is one of the main impediments to economic recovery. One way to address rising prices is to tackle this shortage.
When expenses are not covered by the employer, workers must pay out of pocket. For workers with a family, additional expenses for travel can be very high and can impede the worker's mobility.
This tax deduction is a concrete and effective means of enhancing the mobility of construction workers.
In addition, according to calculations, this would save the federal government approximately $347 million. Other countries, such as the United States, allow a similar tax deduction for skilled labour under the Internal Revenue Code. These employees can deduct the cost of meals, travel and lodging for temporary work away from their place of residence. This type of measure would promote return to work and address labour shortages at the same time. It would also reduce reliance on government programs, such as employment insurance.
As mentioned earlier, the costs associated with travelling to a job site far from home can impact a worker's decision to accept that contract.
Coming back to inflation, it reached 6.8% in 2022, the highest it has been since 1982, when it hit 10.9%. It bears mentioning, however, that the inflationary surge appears to be coming to an end. After peaking in June at 8.1%, it stabilized for a few months and then fell 0.6% to 6.3% on an annualized basis in December.
Price increases have been uneven. In 12 months, food prices rose 9.8%, gas prices rose 28% and the consumer price index, excluding gas and food, rose 5.3%. Since essentials like housing, food and gas have increased the most, low-income earners have suffered the most.
Two weeks ago, the Bank of Canada announced its eighth rate hike, increasing it to 4.5% from 0.5% a year earlier. Higher interest rates benefit those with savings, but cost those with debt. Young homeowners who bought their first home in the midst of the real estate price boom are likely to have some challenges. Since they are usually the ones who take out variable rate mortgages, they will quickly see rising rates on their mortgage payments.
Inflation is a major concern for consumers and cannot be ignored. A Scotiabank survey conducted in December shows that the rising cost of living tops the list of financial concerns for 50% of Quebeckers.
That is why the Bloc Québécois introduced a bill, in May 2021, to help attract new graduates to the regions and encourage them to stay there. With that in mind, it is important to implement measures that protect the population in general, particularly the most vulnerable, such as seniors. When it comes to seniors, the Bloc Québécois is still calling for the government to increase old age security by $110 a month for all seniors aged 65 and over.
Like all other workers, skilled workers are facing higher costs on everything. I will come back to that. According to a recent poll by Canada's Building Trades Unions, 75% of skilled trades workers agree that a tax deduction will give them access to more job opportunities. With inflation the way it is, the time is right to implement a tax deduction to help ease the pressure on some workers' wallets.
At the top of the list of costs that might stop workers from agreeing to travel far for work is the cost of gas. The Russian invasion of Ukraine has pushed the price of oil to levels not seen in eight years. Even though the price of gas is coming back down, its current volatility and unpredictability are enough to dissuade workers from going too far from home to work. It becomes unfair.
What is more, this tax deduction can certainly help deal with the labour shortage in one sector in particular. The pandemic forced many people out of the labour market for health reasons and it exacerbated the labour shortage in certain sectors. It is important to act quickly to support the sectors that have been hard hit by this labour shortage.
This shortage is a significant impediment to economic recovery. It results in forced closures, the loss of contracts, the cancellation of investments in our businesses and overworked employees. It can even limit opportunities to improve the working conditions of current employees. The pressures related to the shortage of workers will be felt until at least 2030 in Quebec especially because of the aging population. The Bloc Québécois is proposing a suite of measures to alleviate labour shortages across Quebec. In its 2021 spring budget, the government promised to create at least one million jobs. Creating jobs when there is a shortage of workers really makes sense.
The Bloc Québécois was already concerned about the labour shortage. It made some good proposals during the 2021 election campaign. We proposed seven concrete measures to help fix the problem. First we must value experienced workers and increase, from $5,000 to $6,500, the amount of employment or self-employment income that is exempt when calculating the guaranteed income supplement, or GIS. That is in the bill that I introduced last week. I look forward to debating it here in the House with the other parties.
The GIS is intended for people aged 65 and over with relatively low incomes. It complements old age security, but the GIS decreases rapidly as income increases. The first $5,000 earned, however, does not affect GIS amounts. We propose to increase this exemption by $1,500.
The temporary foreign worker program must also be handed over to Quebec. The Bloc Québécois is calling for the program to be repatriated to Quebec, which is in a better position than anyone else to identify the specific labour needs of businesses within its borders.
Another trend that is emerging in Quebec is the digital shift. Businesses are increasing their efforts to accelerate the digital shift. This is one way to increase productivity and get around the problem of the labour shortage. This is another area that needs to be addressed. We need to support and assist SMEs in that shift. It is about competitiveness.
Tax credits for research and development also need to be improved to stimulate innovation. We are also suggesting creating a new tax credit of up to $3,000 per year for recent graduates in the regions, to a maximum cumulative amount of $8,000 for recent graduates working in designated regions.
In closing, I want to present some figures on Quebec's construction industry, which is very lucrative but has labour shortage issues. That is why the Bloc was quick to propose several solutions, because there is no magic bullet for solving the labour shortage. We need to approach the problem from various angles. The importance of Quebec's construction industry cannot be understated. This is as true from an economic point of view as it is from a job creation point of view. We are talking about investments of nearly $53 billion in 2019. We are also talking about 264,600 direct jobs generated per month, on average, or one out of every 20 jobs in Quebec. It also generates thousands of other jobs in other sectors.
To conclude, the Bloc made an intervention through my colleague from Joliette at the Standing Committee on Finance during debate on this bill. My colleague pointed out to the government that, since this is a private member's bill, the government tends not to propose any amendments, particularly in terms of including safeguards for certain provisions and thus reassuring the parties on the interpretation or application of a given bill. In the end, no amendments were proposed, and the bill passed without amendment on division in only about 15 minutes.
I want to say one last thing in closing. As members can see, this bill reflects the current context in which the construction industry is facing many challenges. Given how important this industry is to the economy, we need to look into this problem and help the industry find solutions to the labour shortage. This bill is one of those solutions.
Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons
Mr. Speaker, in the statements the member has made, there are some aspects I agree with, and others I disagree with. When we talk about Bill C-241 itself, there are issues with tax fairness within the legislation. There is a lack of safeguards within the legislation that the member talks about supporting. There are some technical deficiencies within the legislation.
I think that, if we take a look, if I may, at Bill C-19, which was the federal legislation that was brought forward, we would see that, in moving forward with the labour mobility tax credit, it does allow for workers in the building and construction trades to deduct up to $4,000 in eligible travel and temporary relocation expenses, giving them a tax credit of up to $600 a year.
The labour mobility tax credit goes a long way in being supportive of an industry. The member made reference to the construction industry in the province of Quebec, and the construction industry in the province of Quebec is, in fact, very important to the government. We recognize that there are many ways and many areas in which, throughout the country, we can look at how we can further enhance and support the construction industry. There is a labour shortage. The member made reference to the kind of actions, and the number of jobs the government created. I think it is worthy of note.
Do members know that over 800,000 jobs have been created if we look at the number of jobs in Canada prepandemic? We can take a look at the number from before the pandemic started, and we can add about 825,000 or 830,000 new jobs since that time. I would ultimately argue that the government has been very successful at ensuring that Canada is in a great position to come back in a better and healthier way when it comes to the whole issue of jobs.
Yes, there is a huge demand for employees in the different regions of the country. There are certain sectors, and the construction area is one of them. That is one of the reasons why we look at other mechanisms we could put into place to support. Whether it is forgiving the interest for apprentices on federal loans, the enhancement of the labour mobility tax credit, or other initiatives, I believe that it is contributing and making a difference.
We also recognize that immigration can play a critical role in meeting our labour demands, not only for today but also into the future. Further to that, I have always argued that, if we look outside Canada to supply workers, we should also, at the same time, look at ways we can enable those workers to become landed immigrants to Canada. That is something that has been very important to the government.
We have been looking at ways in which we can add to the workforce by bringing in international students. This has had a positive impact in Canada, in many different ways, not only filling literally tens of thousands of jobs, but also adding to the social fabric in which we all live in and have grown to appreciate.
The numbers of, and I use this as an example, international students today, compared to what it was seven, eight years ago, have multiplied significantly, from the 35,000 or 40,000 to closer to 350,000. There are significant numbers of international students who are studying a wide spectrum of issues. The member spoke prior talked about construction jobs, and many of students are taking those types of construction jobs. They are getting an education at our colleges and, in some cases, universities, to work either directly or indirectly in the construction industry.
We are looking at ways to further enhance opportunities for those who want to enter the occupation. There are many examples of low-income families working in the industry. I am very pleased with the fact that we have the federal refund tax credit for the Canada workers benefit program. Tens of thousands of Canadians are directly benefiting from that credit. It is significant. An individual receives just over $1,400 and a family unit receives up to $2,400 to assist workers with a lower income.
We can look at the basic tax exemption. I talk about this because taxation policy does matter and does make a difference. The government has looked at the labour mobility tax credit within Bill C-19 and has addressed many of the shortcomings I pointed out in regard to Bill C-241. I had the opportunity to look into what Bill C-241 is proposing, and I would suggest there are too many technical deficiencies. There is an issue of taxation fairness in some of the areas. There is, in fact, a lack of safeguards, as I pointed out. The sponsor of the legislation can maybe sit down with ministers or others and expand on some of those points.
When it comes to apprenticeship programs and ways we can support labour enhancement, the government has been very progressive in trying to deal with that and enhance it. I have been with the Prime Minister in Manitoba on one or two occasions to look at how we can contribute to enhancing trade and labour in the province of Manitoba. We have wonderful organizations out there that are developing programs.
Earlier today we heard the Conservatives finally get on board with the idea of national opportunities for individuals to be recognized in health care professions and have mobility rights across Canada. They refer to it as a “blue seal”. I suspect they are taking that idea in part from the Red Seal program, which is for tradespeople. Whether it is someone international or someone who takes culinary arts to achieve the Red Seal, it has a profoundly positive impact for that individual.
When we look at the construction industry, there is potential growth in that area with regard to getting recognition from a national perspective. The government, through taxation policies, has been there and continues to be there for the construction industry in particular, but also, as I pointed out, for those who are on the low-income scale. Not all construction workers are able to collect the annual money necessary to provide for a full family or even themselves. That is why we have provided the enhancement of the Canada workers benefit program.
I believe it is important that we use our taxation policy as a mechanism to support families and individuals in different situations. One of those situations is looking at ways we can enhance our labour market and support the people who are working so hard to get ahead in life, particularly by upgrading their skills. Apprenticeship programs are an excellent example of that.
Brian Masse NDP Windsor West, ON
Mr. Speaker, it is a pleasure to join the debate here this evening. Bill C-241, sponsored by the member for Essex, is an excellent bill that the NDP will be supporting. I am also pleased to be in the same area as the member, and I think it is a good example of how we can bring forth responsible and solid legislation that not only reflects on our area, but also impacts the rest of the country.
Unfortunately, I cannot get the last 10 minutes back from the previous speaker, but I can say that the member sponsoring the bill has been open to meeting with the government and ministers on an open basis. He has approached the Liberals very responsibly, trying to get them to come on board. Quite frankly, I think the only reason the Liberals do not support it is because it is not their idea. It is as simple as that.
I am going to go through the specifics of why the bill is important, but a lot of people would see this as a housekeeping bill in many respects. I want to point out that this is a modest tax credit and a piece of legislation with an approach that should be, in a minority Parliament, a bipartisan way to get some stuff done for Canada. I commend the member for coming forth with the bill right away. He was selected high in the order, and we only get a certain amount of opportunities and time. It is like winning the lottery.
This is not a going-through-the-motions type of bill; it is going to provide a tax credit. We know there are many tax credits out there for other individuals and corporations. It is unfortunate that we do not have this one, which is to allow for travel-related expenses for work done at least 120 kilometres away from a skilled trades member's place of residence. In Windsor and Essex County, which includes LaSalle, Tecumseh and Kingsville, even the Chatham-Kent area in southern Ontario, there are often different times where we might have a flux of employment in the auto industry, or other types of trades that go up and down. We also have many workers who will fly out to Alberta, to the oil sands, or fly out to other places to do skilled trades work. This is a modest tax credit to help them in that process.
These individuals are self-employed in many respects, although they often belong to unions, like LiUNA, which is a very good union, and Unifor, which is another good union. At times, they are individually contracted to go out to different places, and the cost can be quite significant. The previous speaker from the Bloc mentioned a really good point on the inflationary costs that have gone up for travel, and other things of that nature. I think that is an excellent point. This keeps people working all the time and stops them from having to go on unemployment. It also encourages young people to have more stability. It is a challenge to work abroad. There is a lot of stress when it comes to family and raising young children.
These measures are controllable. The person has to provide receipts. There is full accountability for the expenses taking place. I looked at some of the other tax havens, the types of taxes and tax credits we have for people. I will focus on a couple of them to show how unfair it is for these workers to not be able to write off a few business-related expenses for their travel when it is helpful for our country. We have a corporate dividend tax credit, a tax credit for the oil and gas industry, and a stock option deduction for taxes. We have a number of different businesses taxes that businesses can write off, which even include private boxes for sports tickets, concerts, vacations, office parties, and deductions for executive pay. If members can believe it, all those things are a tax deduction, but they are not for skilled trades workers.
We are also trying to get more women and diversity into our skilled trades, but they cannot get the same deductions we can for an office party. It is outrageous. For the government to complicate this, or make it more difficult than it seems, is irresponsible. I do not know why the Liberals cannot just get behind the bill. It is unfortunate. The bill has a history in this House. Former New Democrats for Hamilton Centre have brought this forth, including past members Chris Charlton, David Christopherson and Wayne Marsden. Now our current member for Hamilton Centre, who is doing an excellent job on this, and the member for Essex have pulled this together, and I think it is worthy of being brought forth on its merit alone.
We have done this before. In the last Parliament, I worked with the member from Saskatoon when I had a private member's bill on single-event sports betting, and because he got selected higher, I took it off the Order Paper and gave it to him. He took it and did a wonderful job, and the legislation got passed. It affected the reduction of organized crime, and now we have an accountable process. It is a good example of making Parliament work. I think the bill before us should be seen with the same type of lens.
I do not know why government members would want to oppose this legislation. Some of them argue it is redundant. Some of them argue it is not good enough. It is ridiculous. Those arguments are shallow and vain, quite frankly, because if there is still a problem, it can go to the Senate for some amendments. Members can be creative and suggest something or show something that is wrong with it in a concrete way, rather than just trying to wind the clock down on the process.
When we get an opportunity in the House of Commons, it is like winning the lottery. For people who do not know, we are like ping-pong balls in many respects. The process is that we get drawn randomly, and if a member gets selected in the top 40, they at least have some hope of actually getting their bill through the entire process in a regular Parliament. However, in a minority Parliament, it is even more shallow, because if we do not have a five-year term, if it is a shorter term, a member would not be able to get their bill through. Even the last bill I did, again with the member from Saskatoon, who did an excellent job of working on the bill with me and others, came into effect within only a couple of days of the election, because the Prime Minister refused to do it. It took outside lobbying efforts to get him to finally officially authorize it and bring the legislation into force, a couple of days before the last election.
It is hard enough, and my point is that we all have a collective responsibility to use these opportunities as best we can. The member did not choose something like “happy groundhog month” or something very shallow like that. This legislation is well thought out. It is legislation that has been in the House before. It is not going to break the Bank of Canada. In fact, it passed the test of mettle in being proper and with due diligence, by the Speaker's ruling. This is one of the things that should be noted. We actually have unions behind the bill as well. Canada's Building Trade Unions has been supporting this tax deduction for a long time. Operably, it is really good. I mentioned LiUNA and Unifor as well.
Again, what we are talking about here is for a long period of travel, 120 kilometres, where a worker would be able to deduct a little bit of that cost. We have all seen, in the last number of months, and the last couple of years really, the rate of inflation going up. I could not think of anything that had more appropriate timing than this. In fact, it merits the government stealing the legislation if it wants to actually impress upon getting something done for workers at this particular time.
If the government is saying that we cannot afford this for skilled trade workers, then why would we not stop letting people write off private boxes, and stop corporations from deducting office parties and other nonsense like that? This is something that could go right to the worker.
Again, it would go through our accounting process, which is already established, and so the legislation would not create another bureaucratic arm or process. It would actually be an amendment to our current tax code, which is commendable in the approach it is taking. It is responsible and could actually be triggered right away.
I feel passionately about this. There are two things that are behind the bill. First and foremost is that a member has sincerely brought forth legislation, which has had a number of versions in the House in the past and is very much amenable to a bipartisan approach and working together. Second, it is very effective for tradespeople. It has a direct correlation to the economy and how we can actually protect workers and enhance opportunities for them and their families, and it has a social justice element as well.
To conclude, there are a lot of other tax things out there that are a bunch of nonsense and that really should be reviewed, eliminated or at least discussed, whereas this is extremely responsible. I hope the bill before us receives the proper weight or at least the government looking at what it can do, and that we can move it to the Senate and go from there.
Andrew Scheer Conservative Regina—Qu'Appelle, SK
Mr. Speaker, it is a great pleasure for me to rise in support of this excellent piece of legislation from my colleague from Essex, which is a great part of Canada. The good people of southwestern Ontario have gotten behind this hon. member, and our leader, the new leader of the Conservative Party, visited that part of the world. There are lots of skilled trades workers in southwestern Ontario, and a massive rally came together for our leader's visit there. Over 1,500 people came out to hear the positive Conservative message about making sure that work always pays. There are so many people in this country right now working so hard, juggling different jobs, often more than one job, trying to pick up extra shifts and always looking for new ways to earn a little more.
People will always want to do better for their families. People will always want to leave more for their children and give their children the types of things they never had when they were growing up. That is a pretty standard, constant human emotion, especially here in Canada, but with the inflation crisis that the Liberals have created, the need to pick up extra shifts and to have a little more money at the end of every day is even more pronounced, because the dollars people are earning are not going far enough anymore. As the Prime Minister devalues the value of the paycheques people bring home, more and more Canadians are forced to work more, for longer and longer hours, and work harder and harder at their jobs.
Construction workers and skilled tradespersons often have extra costs that office workers do not. We all know that people in the skilled trades have to spend a lot of money on tools, for example, and various governments understand that. The previous Conservative government wanted to recognize that cost for skilled trades workers and brought in special tax measures for tools that skilled trades workers have to spend their money on.
This bill, though, would not be a tax credit. This bill would be a great way to recognize the costs that are often associated with travelling to work by allowing those workers to deduct those costs from their income altogether. If someone goes to a restaurant and pays for a burger, maybe it costs five dollars. We know that the restaurant owner does not have to pay tax on the full five dollars, because that five dollars of revenue first has to go to pay the cost. It has to pay the cost of the meat that is in the burger, the bun and the worker who cooked it and put it together, so the business owner has to pay tax only on the profit from that five-dollar cheeseburger. We are kind of applying the same logic to the skilled trades here. When workers have to travel a long distance, the payment for that work should not ignore the reality that the workers had to pay money out of their own pocket to get where they had to go.
A great example is in the province of Saskatchewan, which I am so proud to represent. We have lots of large-scale infrastructure projects, mining projects and natural resource projects that take place far away from large urban centres. We have potash mines where big companies are investing big dollars. They are desperate for workers to fill those jobs, and there are workers who would love to go and work there, but they cannot relocate their families for a short period of time. They do not want to pull their kids out of school, sell their house and move to, in come cases, a very small town that may not even have housing available to them, so what do they do? They commute. They might rent a place nearby or they might literally drive there and back every day, and they are doing that to work. They are doing that to fill a need in our economy, like a project or a job that needs to get done, and they are doing it for themselves, but their paycheque and the taxes that are charged on that should reflect the cost they had to spend to do the very job they are qualified to do.
This, by the way, happens in the corporate world. Companies that have to spend money on transportation to fly their staff to various parts of the country or to transport materials are allowed to deduct those costs against their revenues and pay tax only on the difference.
I view this measure as tax fairness for skilled trades workers. One point of differentiation between the Liberals and the Conservatives is that every time we hear the Liberals talk about tax fairness, we can be sure of one thing: They are raising taxes. That is literally the only way the Liberals know how to even think about tax fairness.
When the Conservatives think about tax fairness, we think about lowering taxes and getting government out of the way. One thing that has been so inspiring to watch is how the leader of our party is showing Canadians how many barriers and obstacles to growth and prosperity exist all around the country.
We just had a fantastic announcement. The Leader of the Conservative Party announced that a Conservative government would bring in what is called a blue seal program. It would allow highly skilled, trained medical professionals to travel from one province to another, or move from one province to another, to fill a need. For people who have credentials from outside of Canada, credentials would be recognized so they could fill badly needed positions in our health care sector all across the country.
This type of initiative builds on that. This type of initiative to encourage workers to go to where the work is, removing the impediment, the obstacle to prosperity, is an incredible method to get people working and to get big projects built again. This initiative is needed, because the investments that go into a lot of these large-scale construction projects are cyclical. If we build a bridge, we do not need to build another bridge for many years, but another municipality might need a bridge. Our skilled workforce has had to become very mobile and very flexible. Workers need to be able to go to where the work is.
Let us take mining companies, for example. They can only do so much exploration every year. They can only do so much drilling. They can only do so much infrastructure building because of their equipment barriers. They tend to rotate and move around where they focus their investment. One year it might be in Saskatchewan and the next year it might be in British Columbia.
We need to ensure that our workforce can be flexible too and that we remove this barrier. If we do not, there may be a job that goes unfilled. There may be a worker who could do it, but with the salary offered for it, they think that by the time they fly in and out several times a year or drive the long hours, their costs will become more and more significant, as the Liberal carbon tax makes the cost of fuel go up. The worker might say they are not that much better off if they take the job. At the end of the day, by the time they pay for all those out-of-pocket expenses and pay their taxes on the money they have earned, they are not even further ahead, even though they have done all this work and spent all this time away from their family.
This bill removes that barrier, that obstacle, and makes it that much easier for a worker to say, yes, they will take the job and take the skills they have learned over the years and apply them to the job that needs to be done. Everybody wins. The worker wins, our overall economy wins and Canadian pension holders win as Canadian companies do better and better. My colleague from Essex has found a win-win-win solution to help all aspects of our economy with this great initiative.
I cannot say how shocked I am that the Liberals are going to vote against it. I say that and then I realize that I should not be shocked at the hypocrisy. When the Liberals say one thing and do another, it is more disappointing than shocking because we see it all the time. They talk a good game. They like to make announcements. They like to go to conventions full of workers whose votes they are trying to win over. They like to have fancy meetings with the heads of some of the unions. However, when it comes time to actually do something and deliver, the Liberals say no.
The Liberal excuse for saying no is so flimsy. They claim they have another type of solution, but it is not going to benefit workers in the same way this bill would. Because of how my colleague from Essex has designed this bill, it would allow workers to deduct expenses right off the top and would be a massive tax savings for them. However, overall, it would not be that much of a cost to the economy. Instead of looking at it as a reduction of revenue for the government, we should be looking at this as an expansion of the work that is going to be done all over the country. That economic activity is going to lead to even more economic activity.
Once again, I am disappointed but not shocked that the Liberals have said one thing during an election and done another thing after the votes were counted. That has been the story of the Prime Minister and the government. However, the Conservatives have shown the way again. We are showing how we are going to bring home better jobs and better paycheques, and the money left over in Canadians' pockets will go farther when the Leader of the Opposition becomes Prime Minister of Canada.
Luc Desilets Bloc Rivière-des-Mille-Îles, QC
Mr. Speaker, we are here this evening to debate Bill C‑241, an act to amend the Income Tax Act with regard to deduction of travel expenses for tradespersons.
Bill C‑241, which is sponsored by the member from the Ontario riding of Essex, is at third reading stage. It seeks to amend “the Income Tax Act to allow tradespersons and indentured apprentices to deduct from their income amounts expended for travelling where they were employed in a construction activity at a job site that is located at least 120 km away from their ordinary place of residence.”
From the outset, I want to say that the Bloc Québécois will vote in favour of this small but extremely worthwhile initiative. In my opinion, most members agree on this bill. We could settle this this evening by taking a vote by a show of hands. Honestly, I find this a bit tough from a procedural perspective. We know that everyone will vote in favour of the bill, but there is a process to follow, even though we know the outcome will be the same at the end of it.
The tax benefit being introduced by Bill C‑241 responds to a request made by Canada's Building Trades Unions, which represent more than half a million construction workers across the country. These people work in more than 60 trades and professions and generate 6% of Canada's GDP. That is significant.
As we know, in Quebec, the construction industry is an extremely important sector of activity. We are talking about investments of nearly $53 million in 2019. We are also talking about 264,600 direct jobs generated per month, on average, or one out of every 20 jobs in Quebec.
In Canada, salespeople, professionals and various other workers in different sectors can already claim a tax deduction for the cost of their travel, meals and accommodation. I believe and the Bloc believes that it stands to reason that these expenses could be claimed by skilled workers whose job sites are far from their primary residence. It is simply a question of fairness.
The scope of Bill C-241 is essentially fiscal, but it is also economic, because it addresses labour shortages and, by extension, inflation. When expenses are not covered by the employer, workers must cover them themselves. With a family to support, additional expenses for travel can obviously become quite burdensome and undermine a worker's incentive to accept certain contracts from time to time.
Inflation was 6.8% in 2022, the highest since 1982. In 1982 it was 10.9%. We need only think of the extreme volatility of gas prices. The price of a litre of gas in Quebec last June was $2.20, enough to bankrupt any family that has to travel a lot for work.
As I was saying, the tax deduction introduced by Bill C-241 is a concrete and effective measure to encourage the mobility of workers in the construction sector. It is an incentive to return to work. We believe that.
According to a recent poll by Canada's Building Trades Unions, 75% of skilled trades workers say that a tax deduction will give them access to more job opportunities.
Given the current inflation, this is the right time to bring in this tax deduction that will help alleviate the financial burden for tradespeople. This tax incentive promises to provide a solution to the labour shortage, and therefore reduce Quebeckers' and Canadians' dependence on government programs such as employment insurance.
Calculations have shown that Bill C-241 could save the federal government approximately $347 million.
I want to make it clear that we are not reinventing the wheel with Bill C‑241. Other countries, such as the United States, have had a similar tax deduction for quite some time. In short, it is a targeted, relevant and timely measure that has been proven to work on the other side of the border. It would be difficult for all parties here in the House to oppose this bill.
I made a correlation earlier between the tax deduction proposed in Bill C‑241, the job shortage and inflation. The Bloc Québécois members believe that addressing the labour shortage will help ease the inflation that is increasingly affecting and worrying our constituents.
The pandemic forced many people out of the workforce for health reasons and exacerbated the labour shortage in some sectors, including the construction trades. This shortage is hindering the economic recovery, because it results in forced closures, lost contracts, significantly reduced investment in our businesses and overworked employees.
Today's inflation stems in part from an imbalance between supply and demand: Supply is limited because of the labour shortage, but demand is stable and growing. Reducing the labour shortage in a specific sector, as Bill C‑241 seeks to do, could potentially fix the imbalance between supply and demand, in addition to reducing inflation as I was saying earlier.
Consequently, in my opinion, it was ill-advised and counterproductive of the Liberal government to try to create one million jobs in budget 2021 without including effective mechanisms to deal with the labour shortage.
The Bloc Québécois has been taking the labour shortage seriously for a long time now. During the last election campaign, we proposed plenty of solutions: recognizing experienced workers; transferring the temporary foreign workers program to Quebec; investing in research and development; investing in the digital transformation; and creating tax credits for new graduates who move to the regions for work.
In summary, the Bloc Québécois has always been an ally of tradespersons who make an essential and invaluable contribution to Quebec's economic prosperity. Bill C‑241 introduces a targeted and appropriate tax measure that will ease the financial burden of tradespersons while addressing the labour shortage and inflation.
For all of these reasons, once again, the Bloc Québécois will support Bill C‑241.
The Deputy Speaker Chris d'Entremont
The hon. member for Essex has the floor for his right of reply.
Chris Lewis Conservative Essex, ON
Mr. Speaker, they say it is a marathon, not a race. Tonight, I think we got halfway through the marathon. Tomorrow could be a really monumental day for skilled trades across Canada. If the bill is passed in the House, it will go to the Senate. People will be one step closer to building Canada, the economy, and quite frankly, their own careers.
First and foremost, Bill C-241 is a common bill for the common people. It makes common sense, something that does not happen a lot in this House.
I want to thank God because without him, this opportunity would never have existed. I thank him so much for this opportunity.
I want to give my thanks to the Bloc Québécois for their amazing remarks this evening and to the member for Windsor West for really understanding this bill and what it can do for skilled trades across Canada. My thanks to those members.
I want to thank Tomi Hulkkonen from the carpenters union, who was down from Windsor. Truthfully, he is one of the curators of this bill. He was here this evening. I got a chance to speak to him before this. I really want to say thanks to him and Karl Lovett from the IBEW, International Brotherhood of Electrical Workers; really, really awesome. Nancy Jahn helped me get to this spot as well; she knows who she is. I thank all the various trades across Canada that I have spoken to over the last year or so while scripting and tweaking this bill, ensuring that it is actually doing the work that it is designed to do. To each and every one of them, I send my thanks.
I am not one who says anything other than let us get the darn job done and fast forward this as much as we possibly can.
This afternoon, I had a chance to speak with our leader. I filled him in. I really want to give my thanks to the leader of the official opposition for being very influential on this bill. I know that back when he was the shadow minister for finance, I went to him for his thoughts. He said to make darn sure that it is a tax deduction and there is no limit on this, so that folks, workers and skilled trades across Canada do not have a limit on how many hours they should be working per year.
I guess the question in the House now is: Why does the Liberal Party not support skilled trades? I do not understand, to save my soul, why it would not support them, but apparently it does not. Tomorrow is a fresh, new day.
It has only ever been and will only ever be about the people. One can have the greatest widget in the world, but one will not build or sell it unless one is surrounded by the greatest people. Our skilled trades are exactly who will build this amazing country called Canada. Equally, however, they need our support.
I truly do not care who gets the credit. If the government wants to take my bill, Bill C-241, and put in the legislation tomorrow, I am good with that as long as our skilled trades get the support they deserve and need.
Again, it is a marathon; it is not a race. My phone is on, and my door is open. If the government will reach out to me and have a conversation about how to enhance this, perhaps in the Senate when it goes there tomorrow thanks to the amazing Bloc and NDP support, I am all ears. Let us just support our skilled trades.
In closing, I will say this one more time: It has only ever been about the people. Unless we support the ones who fix our bridges, build our roads and keep our electrical system going, we have nothing.
Some hon. members
Question.
The Deputy Speaker Chris d'Entremont
The question is on the motion.
If a member of a recognized party present in the House wishes that the motion be carried or carried on division, or wishes to request a recorded division, I would invite them to rise and indicate it to the Chair.
The Deputy Speaker Chris d'Entremont
Pursuant to order made on Thursday, June 23, 2022, the division stands deferred until Wednesday, March 22, at the expiry of the time provided for Oral Questions.
The House resumed from March 21 consideration of the motion that Bill C-241, An Act to amend the Income Tax Act (deduction of travel expenses for tradespersons), be read the third time and passed.
The Deputy Speaker Chris d'Entremont
Pursuant to order made on Thursday, June 23, 2022, the House will now proceed to the taking of the deferred recorded division on the motion at third reading stage of Bill C-241 under Private Members' Business.
(The House divided on the motion, which was agreed to on the following division:)
The Deputy Speaker Chris d'Entremont
I declare the motion carried.
(Bill read the third time and passed)