Bill C-32

Fall Economic Statement Implementation Act, 2022

An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 3, 2022 and certain provisions of the budget tabled in Parliament on April 7, 2022

Part 1 implements certain measures in respect of the Income Tax Act by
(a) providing that any gain on the disposition of a Canadian housing unit within a one-year period of its acquisition is treated as business income;
(b) introducing a Tax-Free First Home Savings Account;
(c) phasing out flow-through shares for oil, gas and coal activities;
(d) introducing a new 30% Critical Mineral Exploration Tax Credit for specified mineral exploration expenses incurred in Canada and renounced to flow-through share investors;
(e) introducing the Canada Recovery Dividend under which banks and life insurers’ groups pay a temporary one-time 15% tax on taxable income above $1 billion over five years;
(f) increasing the corporate income tax rate of banks and life insurers’ groups by 1.5% on taxable income above $100 million;
(g) providing additional reporting requirements for trusts;
(h) providing rules applicable to mutual fund trusts listed on a designated stock exchange in Canada with respect to amounts that are allocated to redeeming unitholders;
(i) providing the Minister of National Revenue with the discretion to decline to issue a certificate under section 116 of the Income Tax Act in certain circumstances relating to the administration and enforcement of the Underused Housing Tax Act ;
(j) doubling the First-Time Homebuyers’ Tax Credit;
(k) expanding the eligibility criteria for the Medical Expense Tax Credit in respect of medical expenses incurred in Canada related to surrogate mothers and donors and fees paid in Canada to fertility clinics and donor banks;
(l) introducing the Multigenerational Home Renovation Tax Credit;
(m) allowing access to the small business tax rate on a phased-out basis up to taxable capital of $50 million;
(n) modifying the computation of income as a result of the adoption of a new international accounting standard for insurance contracts;
(o) introducing a new graduated disbursement quota rate for charities;
(p) providing that the general anti-avoidance rules can apply to transactions that affect tax attributes that have not yet been used to reduce taxes;
(q) strengthening the rules on avoidance of tax debts;
(r) modifying the calculation of the taxes applicable to registered investments that hold property that is not a qualified investment;
(s) modifying the tax treatment of certain interest coupon stripping arrangements that might otherwise be used to avoid tax on cross-border interest payments;
(t) clarifying the applicable rules with respect to audits by Canada Revenue Agency officials, including requiring taxpayers to give reasonable assistance and to answer all proper questions for tax purposes; and
(u) extending the capital cost allowance for clean energy and the tax rate reduction for zero-emission technology manufacturers to include air-source heat pumps.
It also makes related and consequential amendments to the Canada Deposit Insurance Corporation Act , the Excise Tax Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , Part 1 of the Greenhouse Gas Pollution Pricing Act and the Income Tax Regulations .
Part 2 amends the Excise Act, 2001 and other related texts in order to implement changes to
(a) the federal excise duty frameworks for cannabis and other products by, among other things,
(i) permitting excise duty remittances for certain cannabis licensees to be made on a quarterly rather than a monthly basis, starting from the quarter that began on April 1, 2022, and
(ii) allowing the transfer of packaged, but unstamped, cannabis products between licensed cannabis producers; and
(b) the federal excise duty framework for vaping products in relation to the markings, customs storage and excise duty liability of these products.
Part 3 amends the Underused Housing Tax Act to make amendments of a technical or housekeeping nature. It also makes regulations under that Act in order to, among other things, implement an exemption for certain vacation properties.
Division 1 of Part 4 authorizes the Minister of Finance to acquire and hold on behalf of His Majesty in right of Canada non-voting shares of a wholly-owned subsidiary of the Canada Development Investment Corporation that is responsible for administering the Canada Growth Fund and to requisition the amounts for the acquisition of those shares out of the Consolidated Revenue Fund.
Division 2 of Part 4 amends the Bretton Woods and Related Agreements Act to increase the maximum financial assistance that may be provided in respect of foreign states.
Subdivision A of Division 3 of Part 4 enacts the Framework Agreement on First Nation Land Management Act .
Subdivision B of Division 3 of Part 4 contains transitional provisions in respect of the enactment of the Framework Agreement on First Nation Land Management Act and makes consequential amendments to other Acts. It also repeals the First Nations Land Management Act .
Division 4 of Part 4 amends the Government Employees Compensation Act in order to fulfil Canada’s obligations under the Memorandum of Understanding between the Government of Canada and the Government of the United States of America concerning Cooperation on the Civil Lunar Gateway.
Division 5 of Part 4 amends the Canada Student Loans Act to eliminate the accrual of interest on guaranteed student loans beginning on April 1, 2023.
It also amends the Canada Student Financial Assistance Act to eliminate the accrual of interest on student loans beginning on April 1, 2023.
Finally, it amends the Apprentice Loans Act to eliminate the accrual of interest on apprentice loans beginning on April 1, 2023 and to clarify when the repayment of apprentice loans begins during the interest suspension period from April 1, 2021 to March 31, 2023.

The House resumed consideration of the motion that Bill C-32, An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 3, 2022 and certain provisions of the budget tabled in Parliament on April 7, 2022, be read the second time and referred to a committee, and of the amendment.

Fall Economic Statement Implementation Act, 2022

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Mr. Speaker, before the Minister of Finance introduced Bill C-32, the fall economic statement implementation act, on November 3, the Conservative leader made two clear demands on behalf of our party.

First, we wanted the Liberal government to stop the taxes. This included cancelling the planned tax hikes and the tripling of the carbon tax. Second, we wanted the Liberal government to stop the spending. Any new spending by Liberal ministers in the government must be matched by an equivalent saving to cut wasteful spending and stop the inflationary deficits that drive up the cost of everything for Canadians.

Unfortunately, neither of our demands was met by the government and, for that reason, I will be voting against this bill.

Simply put, the fall economic statement does not address the cost of living crisis facing Canadians right now. In fact, it makes the crisis worse. After seven years of the Liberal government, we pay more today for goods and services and get less. Groceries, gas, home heating and more are getting more and more expensive by the day because of the Liberals' reckless spending habits, the same reckless spending habits that have played a big role in driving up inflation.

Many of the inflationary issues and concerns we face are of the government's own making. For months we have been warning the Liberals that their out-of-control spending would lead to an increase in interest rates. The government responded by telling Canadians not to worry and to go ahead and take out big loans and mortgages, because interest rates would remain low for a long time and there would not be any negative consequences.

Well, fast-forward to now, and interest rates are increasing at the fastest rate in decades. Families that bought a home five years ago with a typical mortgage that is now up for renewal will pay $7,000 more a year. The Bank of Canada has signalled that interest rates will have to rise even higher to tackle inflation. Many Canadians will not be able to afford their mortgages and will risk losing their homes.

Through the government's bad spending habits, as inflation soars, so does our national debt. Since they were elected in 2015, the Liberal government has doubled our national debt, spending more than all previous governments combined since Confederation in 1867. Let that resonate for a moment.

Here are some recent examples of reckless Liberal spending contributing to inflation and our national debt.

The government wasted $54 million on the disastrous ArriveCAN app, yet it refuses to tell us who got rich off those massively excessive contracts.

The federal government paid out generous bonuses to Destination Canada executives when the tourism industry badly needs to recover.

The Liberal government recklessly spent $400 million on random testing at our borders, when medical experts said this policy was no longer needed.

Just last month, the Prime Minister spent $6,000 to stay for one night in a luxurious European hotel room.

Despite all the reckless and record Liberal spending, Canadians have less to show for it and are worse off because of it. Is it any wonder, then, that Canadians are struggling? The cost of groceries is up almost 11%. The cost of transportation is up over 10%. Gas is up over 22%. Next April, the excise tax on alcohol will increase by nearly 7%.

Under these deteriorating conditions, people work harder to try to get ahead, but they take less home because of the higher cost of the things they buy and the higher cost of punishing taxes to afford all this reckless Liberal spending. As a result of the Liberal government's incompetence, goods and services are more expensive and we have less money to pay for them.

How are Canadians reacting to this new reality? Families are downgrading their diets to cover the jump in food prices. Food bank usage is at an all-time high. Seniors are delaying their retirement and watching their life savings evaporate with inflation. Younger adults who did everything right are now trapped in 400-square-foot apartments or living in their parents' basements. No wonder Canadians feel like they have lost control. Many are falling behind, and others are struggling to get ahead.

The fall economic update shows that federal government revenues have increased by $40.1 billion this year alone. As Canadians suffer financially, the Liberal government is actually profiting from increased inflation that it generates and Canadians pay for.

How did it do that? Well, when Canadians pay higher prices on goods and services, they are also paying higher taxes. When they pay higher taxes, the government makes more money.

My NDP colleagues in this place have a history and reputation for taking issue with big corporate greed, yet when it comes to big government greed, apparently it is different and they turn a blind eye.

Rather than rein in the spending to begin slowing down the vicious cycle of spend and inflate, the Liberals drive the cycle of inflation even faster by spending more money at every opportunity they get. In addition to driving inflation, the federal government is also incurring tremendous amounts of debt. In fact, debt interest payment costs will have doubled this year. Next year, interest payments will be nearly as much as the Canada health transfer, and it is projected to be larger than what the government spends on the budget for the Department of National Defence.

Let us think about that. This is not good governance. It is dangerous governance. Anyone with a stake or interest in the good governance of our country should be alarmed and concerned.

Today, the federal government spends more money than any federal government before it. It is bigger, in terms of workforce, than ever before, yet what are the results? Millions of immigration applications are backlogged. Passport applications are severely delayed. New NEXUS and FAST applications are far behind schedule. The Phoenix pay system disaster continues. Government transparency is all but gone as journalists, researchers and Canadians cannot access federal information because the access to information system is broken in many federal departments.

Another irony I will point out is that despite the record number of federal employees and a track record of nothing working, this big-spending Liberal government spent $14.6 billion last year on outsourcing contracts to businesses outside of the public service to do public service work. This is yet another indication that the federal government is too big, which is causing it to break down.

Canadians are paying for reckless Liberal spending. We are not benefiting from it. In fact, future Canadian generations are at risk because of that and the debt the Liberal government has incurred. Canadians must realize that as the Liberals make more promises for a better tomorrow to detract us from the issues of today, none of the problems they have created, which Canadians now face, are getting fixed. After seven years of Liberal government incompetence in Ottawa, Canadians are realizing they are worse off today compared to when the Liberals first took office in 2015. We need real solutions to these real problems that Canadians are facing right now.

Instead of creating more cash, the Conservatives would create more of what cash buys. Enough with the talking, we need to get more homes built. We need to make energy more affordable, and to do so we would repeal anti-energy laws and get Canadian energy out to market. We would cut corporate welfare and axe the carbon tax. We would tackle climate change by making alternative energy cheaper, not by making Canadian energy more expensive. We would reform the tax system to ensure that whenever people work an extra hour, take an extra shift or earn an extra bonus they are always better off and would keep more of that dollar for themselves and their needs, not for the government's political agenda.

Conservatives have an ambitious vision and plan for when we form government after the next election, but for now, I am going to do my part by voting against Bill C-32.

The House resumed consideration of the motion that Bill C-32, An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 3, 2022 and certain provisions of the budget tabled in Parliament on April 7, 2022, be read the second time and referred to a committee, and of the amendment.

Business of the House

[Mark Holland, Liberal, Ajax, ON]

Mr. Speaker, I thank my hon. Bloc Québécois colleague, who is a very reasonable person. He is right, but when someone asks me a question, it is my job to answer. Every time I am asked the Thursday question, I try to answer as clearly and directly as possible.

Moving back to the calendar, as I know the hon. House leader for the opposition is keenly awaiting this information, this afternoon and tomorrow we will continue with the debate on Bill C-32, concerning the fall economic statement. Of course, we look forward to that hon. colleague's support for this.

Next week, we will be focusing on the second reading debate of Bill C-20, the public complaints and review commission act; Bill S-4, COVID-19 measures; and Bill C-27, the digital charter implementation act, 2022.

Fall Economic Statement Implementation Act, 2022

[Michael Coteau, Liberal, Don Valley East, ON]

Madam Speaker, I want to take this opportunity to thank the people of Don Valley East for providing me with the privilege of speaking in the House.

My riding is a remarkable community. It is very diverse culturally, in education and in professions. There are so many differences in my community, but despite all of these differences, we have the same set of values. We believe in values that unite us, like that hard work pays off; that education is and should be a top priority; that if people are sick, we come together and pool our resources to make sure they get the help they need; and making sure that our country remains clean and our environment is protected. The most important value I have picked up over the years is that, when we stick together, we are stronger and better for it. These are the values that make Canada and my community work.

I have the opportunity, due to my community's support, to come into this chamber through the democratic process and reflect those values in the House. We put those values into action by making decisions. Each of us has a choice we can make every single day. It is about choice. When we really cut away everything else, at the end of the day we are sent here to make decisions and choices for our communities. The word “choice” is important when it comes to democracy. It is an important word in the House, and every day those actions we take and choices we make eventually set a tone and become government policy and law.

We are here to make decisions and choices, and when our choice is not aligned with our communities, we know what happens. Communities eventually boot us out of office. We have an opportunity here to align with our communities. I can tell members that when it comes to the fall economic statement, I am very aligned with where my community is, and my community is aligned with the position I am taking in the House.

I am proud to support Bill C-32. I grew up in a community where, despite all of the big differences, people worked together and stuck together. It is a community that has many different types of housing: low-rent and subsidized housing, Toronto Community Housing and low-cost condominiums. There is an array of different styles of homes, and we all live together.

Some people are struggling in my community. I grew up in a neighbourhood where young people went to school without lunches. Growing up, I saw young people not getting the support I did at my house. I saw and picked up on these things. I come from a neighbourhood where many of the young men I grew up with did not graduate high school. By the time I was 21, I must have known at least a dozen young men who were murdered in my community due to street violence. I picked up on these things and took note. It was for these reasons I originally ran to be a school board trustee when I was almost 30 years old. I saw inequity in society and I wanted to take the values that were instilled in my community and look for ways to bring them into forums like this.

I saw many young people with limited opportunities. We are able, in assemblies like this, to create opportunities for people by the decisions and choices we make. I was pretty lucky. I had my mother and father, aunts and uncles, cousins and lots of friends. My lunch was packed for me when I went to school and when I went home, there was a warm meal. I was a lucky person. I did not have to think about the next meal or being safe at night. I did not have to think about those things, so I was able to look for opportunity.

It was because of government programs like student assistance that I got to go to university. I was the first person in my family to go. On whole my street, there were two guys who went to university, and I was one of them. I was lucky to have that opportunity, and it was because of government programming. Once, when I was growing up, my family was threatened with being thrown out on the street by the landlord. We went to the legal aid clinic, and because of the government programs, my family was safe.

One of the first jobs I ever had was subsidized by the government, like the student summer jobs program. I could go and get some experience and take that experience and grow. It is because of those programs that I was able to go off to university and serve my community as an MPP and then as a member of Parliament here in the House of Commons.

At the end of the day, we are opportunity-makers. What we do in this House is create opportunities for people. We create opportunities to make life better for people, and we make opportunities more abundant to them. We have choices. Eventually, with the decisions we make here and the tone we set, there is a tipping point at which it becomes government policy, so I am proud to stand in the House of Commons and support Bill C-32, because I know it is going to create more opportunities for the people who need them.

We just came out of a pretty rough financial situation and COVID. The financial sector on this planet was shocked. COVID changed the entire trajectory of how we do many things. Economically, it has been very challenging for Canadians and for the Canadian government.

Back in 2009, when we went through an economic challenge here in Canada, the Conservatives were in power, and Stephen Harper had choices to make. They decided to take a different route from the one we are taking today. The route they took was to cut programs. They sent out a blanket statement to the ministries, telling them to cut 10% to 15%, or whatever they could, from the departments. They cut literacy programs that were aimed at adult learners, and they did something that shocked Canadians during that time period, changing the rules of eligibility for seniors to receive their pension and moving the age from 65 to 67.

Here we are today in the House of Commons, and a bill is being put forward by this government and the finance minister to look at ways to strengthen people by providing more opportunity. The Conservatives have a choice. They have a choice to support people. I would say without question that the greatest resource we have as Canadians are the people who make up this great country, yet we see the Conservatives voting against things like dental care. Members can imagine having a $1,200 per family dental care program for the kinds of kids I grew up with. I would have been eligible for that program when I was a kid. The way the Conservatives have been talking, I can only presume they are going to vote against Bill C-32.

There is a $500 subsidy for some of the people who rent apartments and need help. The Conservatives are going to vote against that.

We talk about programs like child care, which can save families $10,000 a year. The Conservatives will vote against that.

In this bill is the elimination of interest on student loans. I had a student loan. The only way I could get to Carleton University was to take out a loan, which ended up costing me $57,000. I paid it back, and I was proud to pay it back, because it provided me with an opportunity to eventually be in a place like this with my fellow colleagues, representing my community. We all have choices.

When I was a very young man, I got to hear Nelson Mandela speak in the House of Commons. Yesterday I was learning a bit more about choice and politics in general, and I came across this great quote by him: “May your choices reflect your hopes, not your fears.”

The Conservatives need to stand up and align themselves by choice with their communities, stop using fear as the motivator to separate people and use hope, as I think Bill C-32 does, to bring people together. We should create opportunity and hope, so the next generation of young Canadians, and Canadians today, have the opportunity to build a better country.

[Chandra Arya, Liberal, Nepean, ON]

Madam Speaker, it is my pleasure to speak to Bill C-32, the fall economic statement implementation act for 2022.

The year 2022 has been very eventful. We came out of two and a half years of a pandemic. Canada faced the pandemic in a good state compared to many other countries. We listened to the opinions and recommendations of health care professionals and experts, and we came out of it better than many other countries.

The Canadian economy also came roaring back after the pandemic. We have recovered all the jobs that were lost during the pandemic. If members recall, we had lost around 8.9 million jobs. We have not just recovered all the jobs that we lost, but we have even added more. We are at about 117% of the jobs we had prepandemic.

The unemployment rate was at historic highs during the pandemic and now it is at a historic low. In fact, we have maintained that historic low unemployment rate for the last several months.

Our economic growth has been the strongest. Canadian economic growth is enviable amongst the G7 countries. We are doing better than many of our G7 partners, including the U.S., U.K., France, Japan and Italy.

We have the lowest deficit amongst the G7 countries. In fact, if members recall this year's budget, we had forecasted around a $56 billion deficit, and it is now predicted to be about 30% lower than what was projected a few months back. The budget deficit has also gone down about 3% from what was estimated. I think it is going down to about 1.3%. This is the best amongst all G7 countries.

Before the pandemic, we had the lowest debt-to-GDP ratio amongst all the G7 countries, and we continue to have the lowest debt-to-GDP ratio amongst all G7 countries. The fall economic statement also projects that we will reach a balanced budget in the foreseeable future. However, we are not making a big deal about that right now.

The problems created by the pandemic continue to exist today. The supply chain issues that we saw during the pandemic have continued during the postpandemic period too. The pandemic affected production worldwide. Now one of the biggest manufacturers of various goods in the world, China, is continuing with zero COVID policies, and that adds to the problems we are seeing in the supply chains. This has increased the price of numerous products across the board.

Also this year, Russia's illegal invasion of Ukraine has created its own major problems. There are huge security problems in Europe with repercussions beyond Europe. This has created problems in energy supply, raising the prices of fuel. It has created problems in the food grain supply. Ukraine, as we know, was one of the major supplies of wheat to the world.

All these factor in supply chain issues. Russia's illegal invasion of Ukraine, resulting in higher fuel costs and the spike in food grain prices, has resulted in inflation. Canadians are feeling the pinch when they go to the grocery stores for their essential purchases or when they go to the gas station to fill up their tanks with gas.

October inflation is at 6.9%. A few months back it was higher. From that high it has come down. It was 6.9% in September. It has stayed at 6.9% in October, which is a good trend. The interesting thing is that this number is much lower than what the private sector economists were forecasting. I think they were forecasting between 7.1% and 7.4% inflation, but it has stayed at 6.9%, which is a good thing.

Again, the inflation we are seeing in Canada today is lower than that in the U.S., the U.K. or the eurozone. The inflation pain that Canada is experiencing today is not limited to Canadians. This is something that is being faced by people all across the world, in developed countries, developing countries and everybody else.

To combat this inflation, the Bank of Canada started raising its rates some time ago. I think it has raised the rates dramatically. There is no pattern to the rising interest rates in the history of the Bank of Canada, if I am not mistaken, but it has to stay to its mandate of bringing down inflation to the targeted rate of around 2%. With the increase in interest rates and higher inflation, it does not require brains to forecast that the economy is going to slow down in 2023. It is expected.

To help Canadians today, the vulnerable Canadians who are facing the problem of inflation and the forecasted economic slowdown next year, we have already taken numerous measures. While we are taking numerous measures, which have been explained in the last few months in the budget and also in this fall economic statement, we are continuing to restrain the deficit, because we do not want to add fuel to the fire of inflation.

Canada is better placed today than any other country in the developed world to face this oncoming economic slowdown. However, because of the pain faced by Canadians today, it is natural for Canadians to worry about the current status and the future. Canada's prosperity and standard of living have been quite high compared to any other country in the world. That is because of the natural resources we have, such as oil, gas, minerals, metals and forestry products, and the hard work of several generations of Canadians.

We have good prosperity and a good standard of living, but the current status and possible slowdown has Canadians worried about the future prospects for our children and grandchildren. They are naturally worried about whether we can pass on the prosperity that we enjoyed in the past to our future generation. However, in spite of the inflation that we are facing today, in spite of the pain we are seeing today, we should not forget the big picture. There are huge economic opportunities ahead of us in Canada, and I will come to that in a minute.

The globalization and global trade that we knew before the pandemic is almost on its way out among the developed countries, even with our biggest trading partner, the United States. Its Secretary of the Treasury has stated that what they call “friendshoring” is going to be a big issue going forward. The U.S. brought in the Inflation Reduction Act, which brought in the U.S. CHIPS and Science Act, and basically that is creating a new industrial policy.

We have to see what opportunities are available for us. One of the biggest opportunities I foresee for us in Canada is the critical minerals that are required to power the next generation of vehicles and energy storage batteries. We have the critical minerals, and we have already stated in the previous budget the support for the critical mineral sector.

Recently, the federal government signed an agreement with Ontario for the Ontario regional energy and resource tables to develop the natural resources sector, specifically the clean electricity grid, critical minerals, nuclear technology, clean hydrogen and sustainable forestry. The federal government is taking a team Canada approach in working with the provinces so that we can work together to align the resources, timelines and regulatory approaches to develop the critical minerals, forestry sector, nuclear energy and clean electricity. There are a lot of opportunities ahead.

We have also set up the Canada growth fund through which we want to bring in billions of dollars in private sector investment to achieve our economic objectives.

The House resumed consideration of the motion that Bill C‑32, An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 3, 2022 and certain provisions of the budget tabled in Parliament on April 7, 2022, be read the second time and referred to a committee, and of the amendment.

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

Madam Speaker, as I was saying, seniors are the ones most likely to have to make tough choices at the grocery store or the pharmacy, not to mention housing, yet this government is deliberately choosing not to give people aged 65 to 74 the old age security increase even though they need it now more than ever.

That is not an inconsequential choice. Hypocritically, the government is trying to raise the retirement age. It has sneakily decided to force the less fortunate to work until they turn 75. The Liberals are well aware that inflation makes it impossible for people to make do with what the state provides. What we are witnessing is the creation of a two-tier retirement system. Got money? Enjoy retirement at 65. No private pension plan? Work until age 75. The government is choosing to increase inequality, and it is targeting women first and foremost. This is Liberal-style feminism. The Sheriff of Nottingham could not have done better himself.

While there is a serious risk of a recession in 2023, the Government of Canada is abandoning the comprehensive EI reform it promised last summer. There will be no EI reform. We know that the system has been essentially dismantled over the years and six out of 10 workers who lose their jobs are currently not eligible for EI. That is the situation seven years after the government promised reform. Time is of the essence. Clearly, Liberal promises are only binding on those who choose to believe in them.

On a more serious note, we must absolutely avoid being forced to improvise a new CERB to offset the system's shortcomings if a recession hits. As was saw during the pandemic, improvised programs cost more and are not as effective. Employment insurance is an excellent economic stabilizer in the event of a recession. However, the government's financial forecasts show that it does not anticipate many more claims, and that is a problem. In fact, the government predicts a surplus of $25 billion in the EI fund by 2028, and that amount will be paid into the consolidated fund rather than being used to improve the plan's coverage. That is unacceptable.

As for the 26 weeks of EI sickness benefits, that is a measure that was already in a bill passed a year and a half ago, even before the last election. All that is missing is a decree by the government to implement it, but the sick are still waiting. The House had even ordered the government to extend sickness leave to 52 weeks, and they are not even implementing the 26 weeks.

To summarize, this government is pointing to the problem of a rising cost of living, but is happy just talking about it. It is warning of difficult times ahead this winter without providing a way to get through them. It makes some grim economic predictions without ever considering any of the opposition's proposals as to how to prepare ourselves. They repeat what has already been done in the past, what they already announced in last April's budget, but do nothing else.

Let us consider the supply chains, whose vulnerabilities became apparent during the pandemic. Last spring's budget mentioned the problem 114 times. The statement two weeks ago mentioned it 45 more times, but neither provided any measures to resolve the problem. There is nothing in Bill C‑32, either.

As we know, all too often, the government buries harmful measures in its mammoth budget implementation bills, hoping that they will go unnoticed. This time, the bill contains no surprises, unless they are well hidden and have not been found yet.

Bill C‑32 even contains a number of interesting measures that were announced in the last budget. For instance, there is an anti-flipping tax on residential properties to limit real estate speculation, and a multi-generational home renovation tax credit for those who renovate their homes to accommodate an aging or disabled parent. The Bloc has been calling for such a measure since 2015. We welcome it.

There is also a first-time homebuyer tax credit to cover a portion of the closing costs involved in buying a home, such as notary fees and the transfer tax. There is also a temporary surtax and a permanent increase to the tax rate for banks and financial institutions, as well as the elimination of interest on student loans outside Quebec. Quebec has its own system, so it will receive its share.

In addition, a tax measure that supports oil extraction has been eliminated. No more flow-through shares. It is just one drop in the ocean of subsidies, but it is a start. There is a tax measure to promote mining development for the critical minerals that are essential to the energy transition, as well as an amendment to the excise tax to prevent cannabis producers from having to pay it on their unsold stock, which is causing them major cash flow problems.

As we know, the government gave licences to its friends. Now that they are having problems, the government is proposing a solution.

Other than that, Bill C-31 consists of minor legislative amendments. For instance, there is an adjustment to the Income Tax Act to reflect the new accounting standards for financial institutions. There are a lot of very technical pages about that.

There is also an amendment to the Income Tax Act to plug some of the loopholes that financial planners were trying to use to help their clients avoid taxes. We welcome that clarification. There are always people who try their luck. Obviously, the government must do much more to combat fraud, tax evasion and tax avoidance.

Finally, I am certain that my next point will be of great interest to the Parliamentary Secretary to the Leader of the Government in the House of Commons (Senate), who is currently standing in the House chatting with another colleague and not listening to a word I say. I salute him. It is the implementation of a Canada-United States agreement on the salaries of government employees who go to the moon, like Tintin in Destination Moon.

To sum up, Bill C‑32 sidesteps the big challenges facing our society, but there is nothing bad in it. It proposes a few good measures and does some legislative housekeeping.

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

Madam Speaker, as we know, Bill C‑32 contains 25 tax measures and about 10 non-tax measures. There are two kinds: minor legislative amendments and measures announced in the budget in the spring of 2022, last spring, that had not been included in the first implementation bill passed last June.

This means that this bill does not contain any measures to address the new economic reality of a high cost of living and a possible recession. As with the economic statement presented two weeks ago, there is nothing new, it is a rehash. The government thinks its measures are like shepherd's pie, better served as leftovers.

This is a bill with no point or certainty. It does not deserve to be applauded, but contains nothing to justify opposing it. Given current inflation and the risk of recession, the Bloc Québécois had asked the government to focus on its fundamental responsibilities toward vulnerable individuals, namely to increase health transfers, adequately support those aged 65 and over, and urgently reform employment insurance. Since the government chose to reject those proposals, we denounce this missed opportunity to help Quebeckers deal with the difficult times they are already experiencing or that are expected in the coming months.

The Bloc Québécois had asked the government to agree to the unanimous request by Quebec and the other provinces to immediately, sustainably, and unconditionally increase health transfers. The health care system is stretched thin.

While emergency physicians warn us that our hospitals have reached their breaking point, the federal government is failing to act. The government clearly prefers its strategy of prolonging the health funding crisis in the hope of breaking the consensus among the provinces to convince them to agree to dilute their funding requests. That is exactly what the Liberal health minister said in the Quebec National Assembly: It is called predatory federalism.

We know too well that the fixed incomes of seniors do not allow them to cope with what are currently such pronounced increases in the cost of living. Seniors are those who are most likely to have to make difficult choices, such as groceries, medication or housing.

Madam Speaker, I am told that I must share my time with me esteemed colleague from Abitibi—Témiscamingue.

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

Madam Speaker, what I see in the House are members of Parliament who work hard, who are honest and who represent their fellow citizens well. The member for Kings—Hants is one of those people. Frankly, I hold him in high regard. He is an honest person and I know that he will answer my question honestly, without partisanship.

At my constituency office, I hear a lot of talk from seniors aged 65 to 74 who do not receive the same treatment by the federal government as senior who are aged 75 and over. I seriously receive a lot of calls at my office about this. I am asked why they are treated differently from other pensioners.

In Bill C‑32, there is nothing to correct the situation, namely this two-tiered approach to dealing with seniors under the age of 75.

Can my colleague answer me and tell me why?

[Kody Blois, Liberal, Kings—Hants, NS]

Madam Speaker, it is a privilege to rise today to speak to the fall economic statement, which is reflected in Bill C-32.

Let me go on record just quickly about the Federal Electoral Boundaries Commission for Nova Scotia. The report was released today. I want to applaud the commission, particularly on its focus on reinstating all of Hants County as part of Kings—Hants. There was a lot of community backlash or engagement on this issue, and I certainly want to applaud the commission for its work. I know it is not an easy job, but as it relates to the boundaries in Kings—Hants, I do think objectively that it is fair and reasonable.

I am going to use my time this morning to talk about the fall economic statement and how what this government is putting forward is going to matter to my constituents. I am then going to talk about a few things that are going to be extremely important in the days ahead as we move into 2023 and start to focus on budget 2023.

This has been talked about a lot in the House. Right now, we know that times are challenging, particularly for those Canadians who are vulnerable and have lower incomes. I want to applaud the government for trying to strike the balance between fiscal discipline and making sure that there are targeted measures to help those Canadians who do need extra help right now.

First of all, there is a doubling of the GST rebate for the next six months. This is a targeted measure. Eleven million Canadians would receive it. It is something that is around $2 billion to the treasury, but it is something that matters to those families and those individuals who need a bit of extra help right now. It was approved by the House, and I certainly appreciate that it is there.

Along with that is a doubling of the Canada housing benefit. This is to about 1.1 million renters across the country who have lower incomes. I had the opportunity to speak to one of my constituents last week who was really struggling to be able to pay the bills. My riding is rural. It is outside of Halifax, but she was trying to pay a rental bill of about $1,500. That has increased significantly, even since I was elected in 2019. We know the challenges around housing, and this is a really important measure to help those who are needing the extra help.

By working together here in Parliament, we have been able to move forward on dental care support for children under 12. I believe that has actually passed the Senate. It is another important measure for children in households with incomes under $90,000 that do not have any private insurance. We are making sure those children have access to dental care. I was disappointed to see that the official opposition, the Conservatives, voted against this. I did not hear much of a rationale as to why they would not support something like this, which matters to constituents from Newfoundland and Labrador and all the way to British Columbia. However, I am pleased to see that it is going to move forward. I know it is going to make a difference for families in my riding of Kings—Hants.

Speaking as one of the youngest members of Parliament in the House, who does still indeed have student debt, albeit not federal, one of the big measures is to remove interest from the federal portion of student loans. This is something that matters. On average, it would save those who hold debt almost $400 a year, and it would make sure that we are not piling on interest at a time when students are trying to recover. This is in addition to the fact that we moved the student-loan repayment schedule from an income of $25,000 up to $40,000 before someone would have to start repaying. These are really important measures. I had the chance to be with the Minister for Women and Gender Equality and Youth at Acadia University last week. We spoke to students, and we know how important this measure is.

The Canada workers benefit is a benefit that would be brought forward on a quarterly basis. It will be automatically available to workers. Workers will not have to apply for this. This will come as part of the benefits from the government, and it is for workers who have family income below $42,000, so it is very targeted to help those who are working hard but are struggling to stay ahead. This is another affordability measure that I certainly support.

With respect to the tax-free home savings account and the doubling of the first-time homeowners tax credit, again, as a younger member of Parliament with a number of friends and people I know looking to get into the housing market, I know these are really important measures to make sure that they have tools to help purchase their first home. I applaud the government for moving forward on them.

In my riding, there is the most concentrated group of farms east of Quebec, and there is a number of supply-managed farms. Of course, this government made a promise to make sure supply-managed farms would be compensated, and I am pleased to see the government is moving forward with that. The Minister of Agriculture had the opportunity to announce that in Quebec on Monday. I know it is going to make a difference across the country, particularly for farmers in my riding. We know how important their work is, especially during the pandemic.

I have two other quick points before I transition to something else. There is the launch of the growth fund. This is a $15-billion capitalization of funds to try to draw private capital. For energy transition and opportunities for Canadian leadership on food and energy, this is a really good thing. I am pleased to see the Minister of Finance moving forward with it, along with the tax credit for the hydrogen and critical minerals sector.

I was particularly pleased with the Minister of Finance's candour about the challenges we could face in the days ahead, particularly with the prospect that we could be facing a global recession in 2023. When I look at some of the challenges, such as health care, I was disappointed to see provincial health ministers not take federal money that was on the table in British Columbia on the guise that somehow a national sharing of data was a step too far for them to be able to work together.

We are seeing challenges across the country. We want to make sure that, if we are going to put federal money on the table, it is actually going to health care and it is going to deliver on results. I was quite disappointed, but it is going to be a significant spend. The Government of Canada has made sure there will be more money coming ahead. This is one element, when we look at the fiscal discipline and the fiscal ability for the government, that will be a challenge.

Next is reducing emissions and fighting climate change, and of course Canada's position in the world. I am going to take my remaining time to talk about things I think we need to be really focused on as a Parliament in the days ahead. First of all, concerning regulatory reform modernization and non-cost measures, we need to really start talking about things that do not cost money that can help us to achieve the results and outcomes that we, as parliamentarians, or the government, may wish to see because there is going to be a real challenge on the fiscal position in the days ahead. This could include interprovincial trade.

A Senate report suggest that 2% to 4% of GDP is being left on the table. If premiers want more money for health care, that is fine. First of all, they need to stop the fakery around the idea of national sharing of data and having the results, and get out of the way to make sure we can grow the economy so we can have a sustainable way to pay for it.

I would like to see us move away from command and control regulations. We are one of the worst in the OECD in this regard. That is really important. As well, I would like to see things like a presumptive health approval, and I have said this in the House before. If an applicant comes to Health Canada and already has approvals from a jurisdiction such as the United States, Europe, Australia and New Zealand, jurisdictions that we trust their processes, why would we not give them a presumptive approval to operate in Canada until such time that Health Canada either can approve them outright or found a reason as to why they could not operate in the country?

I want to ask my colleagues if we have given thought to how we are going to double or triple energy generation in the country. As we move to EV vehicles, and as we try to move to a low-carbon economy, we need to have serious conversations on how we are actually going to generate that electricity. I submit to the House that nuclear energy needs to be a big part of that conversation. We have a tremendous opportunity in Canada to be a global leader, and we are already are. We are recognized as being one of the best as it relates to nuclear energy. When we look at a zero-emission opportunity to generate electricity, we need to get more serious on it. I would like to see the government introduce nuclear as part of its green bonds initiative.

I hear too much of colleagues in the House who talk about net-neutral and getting to our 2050 goals, but that are not talking seriously about the technologies that are available before us right now and how we get there.

I would be remiss to not talk about the Atlantic loop. I hope to see in budget 2023 a firm commitment from the government to make sure there is money on the table to drive this initiative. I will go on record saying I am disappointed in Premier Houston's government and the fact that Bill 212 at the Nova Scotia Legislature is creating real challenges for Nova Scotia Power and Emera to actually raise the equity to make this happen. It is unfortunate, and I really hope he can get to the table with our provincial utility to make sure we do not squander this historic opportunity to help get Atlantic Canada off coal.

I look forward to taking questions from my colleagues, and I appreciate having this opportunity to speak today.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Mr. Speaker, last week, I spoke a bit about the shortcomings of the government's economic statement.

Today, I will speak about a particular measure found in Bill C-32 that I think is very important, because it is a matter of justice in the current economy. I am referring to the Canada recovery dividend.

We know that at the start of the pandemic, the big banks and financial institutions received a lot of support from the government. However, in light of the consequences of the pandemic and how well those same financial institutions performed during the pandemic, we can see that they did not need that assistance, or at least not as much as they were offered. The amount of assistance they got may even have put added pressure on the housing market.

Over the course of the pandemic, we saw financial institutions get a lot of liquidity support very quickly. We can see, if we look at their record of performance over the pandemic, that this help really was not necessary or certainly not to the extent it was delivered to them, because they made record profits. When most Canadians were worried about losing their homes and experiencing a significant decrease in their own household revenue, financial institutions were making even more profit than they did before the pandemic began.

There is some evidence, sometimes it is exaggerated to some extent, that this help did increase inflationary pressure within the housing market. There are other important factors, when we look at the housing market, that are driving that inflation. If we look only at the assistance that was provided to financial institutions and banks during the pandemic, we miss a very important part of the story about inflation in housing, which was happening at breakneck speed even before the pandemic. I do not want to minimize the impact of that, but at the same time, if we exaggerate that impact, we do not put ourselves in a good position to address the real structural challenges within the housing market that preceded the pandemic and continue even today.

One measure in the bill that is really important from a point of view of addressing that problem, which is also a problem of fundamental economic justice, is the pandemic recovery dividend. This is about assessing a one-time tax on the profits of banks and financial institutions in excess of one billion dollars. Before anyone freaks out about how this is a tax and that it will hurt the economy and everything else, it is only being applied to banks and financial institutions just on their profits over a billion dollars.

I think most Canadian business owners, if they are listening, would think that if they had a year where they had revenue over a billion dollars to tax at an exceptionable rate, that would be a pretty good year. If banks and financial institutions want to object that some kind of unfairness is going on, that is a sign of how out of touch they are with the real lives of Canadians and the people they are supposed to serve. I would also say that any politician in this place who wants to pretend that somehow this is an unfair tax, some kind of horrible socialism or some act of tyranny, is likewise out of touch.

I will talk a bit in a moment about how some of these measures, like the permanent increase on the corporate tax rate, are well warranted, and certain measures like the pandemic recovery dividend ought to be expanded to other industries through a windfall tax.

What has surprised me about the debate around the pandemic dividend is that I have not heard that term out of the mouth of a Conservative in the debate so far. It could just be that I missed it, so I apologize to any Conservative member who did talk about it. However, I have listened to a number of Conservative speeches now and it certainly is not a common theme. I find it strange that the Conservatives are not talking about it, because for a long time all their leader wanted to talk about was the role big financial institutions were playing in jacking up the prices in the housing market, because they had received too much accumulated capital from government during the pandemic, as he said.

Here is a measure that would actually address, specifically, undoing the harm that the leader of the Conservative Party has made the key plank of his leadership campaign, and now a central plank of his party's strategy in critiquing the government, and he has nothing to say about it.

This is an example of doing something to go after gatekeepers in the financial industry, who are jacking up prices for Canadian working families that are thinking about getting their first home or are trying to figure out getting another home to move to, if they cannot afford their current home, and all the chaos we know is happening for Canadians within the housing market. This is a way of rectifying that and helping to pay for certain things. The Conservatives often ask where we will get the money to pay for this, that money does not grow on trees. It does for the big banks and financial institutions apparently.

The leader of the Conservative Party is willing to talk about that as a problem, but when we get to talking about solutions, suddenly we cannot find him. Maybe he is under his desk right now or hanging out in the lobby. I do not know where he is but he is not talking about a potential solution. This is at least a beginning, to say that a perversion of the pandemic was that these large banks and financial institutions, which already make a ton of money, made even more money.

Assessing a one-time 15% tax on that extra profit above $1 billion, and this is not a low threshold by any measure, is a perfectly reasonable way of trying to get some of the money that we need to pay for things, like the doubling of the GST tax credit, when people are trying to figure out if inflation will mean they cannot buy food for their families or cannot make rent.

The banks and financial institutions are not going to miss that extra money. They may on their balance sheets, and I am sure they will shed a few tears around the boardroom table. I wish them well in their journey for catharsis, but I do not think it is a reason not to do it. They have the money to spare and that money is very much needed to accomplish things for Canadians, who really are in dire straits. They cannot just worry about whether they will post $2 billion in profit or $1.85 billion in profit in their next shareholder report at the end of the quarter.

This is a significant reason why New Democrats are supporting Bill C-32. We think that it is about time we start talking about the people who are making incredible money in this moment of extraordinary challenge for Canadians. Where we think the government has fallen short on this, and we have talked about this a lot on many opportunities, is that outside of financial institutions and banks, other companies are doing very well and posting record profits.

We have talked about Loblaws. This is an example within the grocery world where companies are making huge profits. We know that oil and gas companies are making huge profits in this moment when Canadians are struggling with the rising cost of energy. Those profits would not be growing if they were only increasing their prices to account for their increase in costs. They are not only passing the cost onto consumers, which would mean their profits would stay the same, all things being equal. They are raising prices that go above and beyond the increase in cost. That is how they are achieving record profits in a time of serious strife.

That is why we believe there should be a windfall tax, like the pandemic dividend, along the same structure, that applies to oil and gas companies, grocery retailers and big box stores, which also did very well during the pandemic while mom and pop businesses struggled because they could not offer the same level of service to people in extraordinary times. This has meant that some of those businesses have closed their doors and they are not necessarily coming back. There has been a permanent structural change in certain industries that has favoured larger companies. It makes sense that they would pay more tax on that extraordinary profit.

I am thankful for the opportunity to highlight what I think is a central issue with respect to Bill C-32, one that has not received enough attention to date.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Mr. Speaker, despite differences of opinion on certain aspects, I believe that we can agree that Bill C-32 dusts off some old legislation and also proposes new measures.

That said, our role is also to highlight the bill's shortcomings, and one of these shortcomings is the money for people aged 65 to 74. The hon. member opposite said that seniors would soon get an extra $220 or so. However, I have questions about this “extra”, seeing as pensions have not kept pace with rising consumer prices. I wonder why this amount is considered “extra” when the government created two classes of seniors. I wonder how this amount can be “extra” when more than 70,000 seniors who applied for their pension on time are still not receiving their money.

It is good that the government is implementing measures, but it needs to think of seniors, because they are the ones who built Canada and Quebec as we know them today, and they deserve our full consideration and support.

When will seniors aged 65 to 74 get this consideration and get proper financial support?

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Mr. Speaker, I want to continue on that theme of housing. If we listened to the Conservative leader, we would know that as long as there is this much capital in the market for bidding on new homes and new units of various kinds, we will have to build a lot of units to ever see the price of housing come down.

One thing in Bill C-32 is a pandemic dividend, or the Canada recovery dividend. It is really about going to the very same financial institutions that the Conservative leader has rightly complained about, which got a lot of liquidity support during the pandemic, and taking some of that money back into government coffers for it to be put out on things like the doubling of the GST rebate, the dental benefit and the Canada housing benefit.

I found it odd not to hear any support from the Conservative leader for the pandemic dividend, because it seems to me that it is very clearly an issue of justice, as we are talking about who should bear the cost of the moment we are in, in light of what has gone on in the pandemic. It also seems to be a pretty important tool for trying to right one of the structural problems in the housing market right now.

I wonder if the member might offer his thoughts on the pandemic recovery dividend.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Mr. Speaker, today we are talking about Bill C-32. The opposition's role is to point out what the bill is lacking. So far, it appears that the government's role is to boast a lot and not listen.

We are here to point out the flaws, the jurisdictional issues and the agreements that are not being honoured. Among those agreements is the one on infrastructure, which my colleague mentioned earlier, but there is another one that has not been respected for a very long time. It is the Constitution.

Strangely enough, in the last election, The New York Times said that the party that respected the Canadian Constitution the most was the Bloc Québécois, the separatist party. We are asking that the jurisdictions of Quebec and the Canadian provinces be respected in accordance with the Constitution.

Since I am talking about agreements we want the government to respect, I would like to point out that the 1867 Constitution, the only one that Quebec has signed, has yet to be translated, despite the 1982 agreement to translate it within six months.

When will this finally happen, and when will the government respect its own Constitution? It is about time it did.