Bill C-47

Budget Implementation Act, 2023, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023

Part 1 implements certain measures in respect of the Income Tax Act and the Income Tax Regulations by
(a) enabling the Canada Revenue Agency (CRA) to use electronic certification of tax and information returns and requiring taxpayers to file electronically in certain circumstances;
(b) doubling the maximum deduction for tradespeople’s tools from $500 to $1,000;
(c) providing that any gain on the disposition of a right to acquire Canadian housing property within a one-year period of its acquisition is treated as business income;
(d) excluding from a taxpayer’s income certain benefits for Canadian Forces members, veterans and their spouses or common-law partners;
(e) exempting from taxation any income earned by the Band Class Settlement Trust in accordance with section 24.05 of the Settlement Agreement entered into on January 18, 2023 relating to the attendance of day scholars at residential schools;
(f) providing an additional payment of the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit equal to double the amount of the regular January 2023 payment;
(g) providing for automatic, quarterly advance payments of the Canada Workers Benefit;
(h) allowing divorced and separated spouses to open joint Registered Educational Savings Plans and increasing educational assistance amounts under those plans;
(i) extending, by ‚three years, the ability of a qualifying family member to be the plan holder of an individual’s Registered Disability Savings Plan and expanding the definition of “qualifying family member” to include a sister or a brother of the individual;
(j) allowing defined contribution registered pension plans to correct contribution errors and requiring that the contributions or refunds are reported to the CRA for the purpose of correcting the RRSP deduction limit;
(k) modifying reporting requirements in respect of reportable transactions, introducing reporting requirements for notifiable transactions and providing reporting requirements with respect to uncertain tax treatments, as well as extending the reassessment periods applicable to those transactions and creating or modifying penalties for non-compliance with those requirements;
(l) allowing the CRA to share taxpayer information for the purposes of the Canadian Dental Care Plan;
(m) expanding the definition of “dividend rental arrangement” to include “specified hedging transactions” carried out in whole or in part by registered securities dealers;
(n) implementing the Model Reporting Rules for Digital Platforms developed by the Organisation for Economic Co-operation and Development;
(o) requiring annual reporting by financial institutions of the fair market value of registered retirement savings plans and registered retirement income funds;
(p) expanding the permissible borrowing by defined benefit pension plans; and
(q) implementing a number of technical amendments to correct mistakes or inconsistencies and to better align the law with its intended policy objectives.
It also makes related and consequential amendments to the Excise Tax Act , the Tax Rebate Discounting Act , the Air Travellers Security Charge Act , the Excise Act, 2001 , Part 1 of the Greenhouse Gas Pollution Pricing Act and the Electronic Filing and Provision of Information (GST/HST) Regulations .
Part 2 implements certain measures in respect of the Excise Tax Act and a related text by
(a) clarifying that the international transportation of money benefits from Goods and Services Tax/Harmonized Sales Tax (GST/HST) relief and other special rules in the same manner as a service of internationally transporting other kinds of freight;
(b) permitting a pension entity, in specific circumstances, to claim the pension entity rebate or an input tax credit, or to make the pension entity rebate election, after the end of the two-year limitation period;
(c) specifying that cryptoasset mining is generally not considered a supply for GST/HST purposes; and
(d) ensuring that payment card clearing services are excluded from the definition “financial service” under the GST/HST legislation.
Part 3 amends the Excise Act , the Excise Act, 2001 and the Air Travellers Security Charge Act in order to implement two measures.
Division 1 of Part 3 amends the Excise Act and the Excise Act, 2001 in order to temporarily cap the inflation adjustment for excise duties on beer, spirits and wine at two per cent, for one year only, as of April 1, 2023.
Division 2 of Part 3 amends the Air Travellers Security Charge Act to increase the air travellers security charge that is applicable to air travel that includes a chargeable emplanement after April 2024 and for which any payment is made after April 2024.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends the Bank Act to strengthen the regime for dealing with complaints against banks and authorized foreign banks by, among other things, providing for the designation of a not-for-profit body corporate to be the sole external complaints body. It also makes consequential amendments to the Financial Consumer Agency of Canada Act and related amendments to the Financial Consumer Protection Framework Regulations .
Division 2 of Part 4 amends the Pension Benefits Standards Act, 1985 to, among other things, provide for variable life benefits under a defined contribution provision of a pension plan and amends the Pooled Registered Pension Plans Act to, among other things, provide for variable life payments under pooled registered pension plans. It also makes a consequential amendment to the Canadian Human Rights Act .
Division 3 of Part 4 contains measures that are related to money laundering and to digital assets and other measures.
Subdivision A of Division 3 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things,
(a) require persons or entities referred to in section 5 of that Act to report to the Financial Transactions and Reports Analysis Centre of Canada information that is related to a disclosure made under the Special Economic Measures Act or the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) ;
(b) strengthen the registration framework for persons or entities referred in paragraphs 5(h) and (h.1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act , which are often referred to as money services businesses;
(c) create two new offences relating to persons or entities who engage in activities for which they are not registered under that Act and the structuring of financial transactions undertaken to avoid reporting obligations under that Act, as well as a new offence relating to reprisals by employers against employees who fulfill obligations under that Act;
(d) facilitate the sharing, between the Minister of Finance, the Office of the Superintendent of Financial Institutions and the Financial Transactions and Reports Analysis Centre of Canada, of information that relates to their respective mandates; and
(e) authorize the Minister of Finance to issue directives to persons and entities referred in section 5 of that Act in respect of risks relating to the financing of threats to the security of Canada.
Subdivision A also amends the Budget Implementation Act, 2021, No. 1 in relation to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act .
Subdivision B of Division 3 amends the Criminal Code to provide for a new warrant authorizing a peace officer or other person named in the warrant to search for and seize digital assets, including virtual currency, as well as to expand the list of offences on the basis of which an examination of information obtained by the Minister of National Revenue under various tax statutes may be authorized. The subdivision also makes related amendments to other Acts.
Division 4 of Part 4 amends the Customs Tariff to extend the expiry date of the General Preferential Tariff and Least Developed Country Tariff to December 31, 2034 and to create a new General Preferential Tariff Plus tariff treatment that will expire on the same date. The Division also aligns direct shipment requirements for tariff treatments under that Act with those that apply to free trade agreements.
Division 5 of Part 4 amends the Customs Tariff to remove Belarus and Russia from the List of Countries entitled to Most-Favoured-Nation tariff treatment.
Division 6 of Part 4 allows the Bank of Canada to apply, despite sections 27 and 27.1 of the Bank of Canada Act , any of its ascertained surplus to its retained earnings until its retained earnings are equal to zero or the ascertained surplus applied to its retained earnings is equal to the losses it incurred from the purchase of securities as part of the Government of Canada Bond Purchase Program.
Division 7 of Part 4 enacts the Canada Innovation Corporation Act . That Act continues the Canada Innovation Corporation, which was established under another Act, as a parent Crown corporation, sets out the Corporation’s purpose to maximize business investment in research and development across all sectors of the economy and in all regions of Canada to promote innovation-driven economic growth and includes transitional provisions. The Division also makes consequential and related amendments to other Acts.
Division 8 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act to authorize additional payments to the provinces and territories.
Division 9 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act to renew the authority to make Equalization and Territorial Formula Financing payments for another five-year period beginning on April 1, 2024 and makes a technical change to improve the accuracy of the programs. It also makes a technical change to the calculation of fiscal stabilization payments. Finally, it provides for the publication of the details of all amounts authorized to be paid under that Act.
Division 10 of Part 4 amends the Special Economic Measures Act , the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) to strengthen Canada’s ability to take economic measures against certain persons.
Division 11 of Part 4 amends the Privileges and Immunities (North Atlantic Treaty Organisation) Act to, among other things, enable the Paris Protocol to be implemented in Canada.
Division 12 of Part 4 amends the Service Fees Act to, among other things, clarify the definition “fee”, exempt certain fees from the application of that Act, make certain exceptions in that Act applicable only with the approval of the President of the Treasury Board, make certain changes to the annual adjustment provisions and provide authority for the President of the Treasury Board to amend the regulations made under section 22 of that Act by taking into account the factors established by regulations.
It also amends section 25.1 of the Canadian Food Inspection Agency Act to provide for the application of sections 16 to 18 of the Service Fees Act to low-materiality fees, within the meaning of the Service Fees Act , that are fixed under section 24 or 25 of the Canadian Food Inspection Agency Act .
Division 13 of Part 4 amends the Canada Pension Plan to allow the Minister of National Revenue to make available information to the Minister of Employment and Social Development that is necessary for the purpose of policy analysis, research or evaluation related to the administration of that Act.
Division 14 of Part 4 amends the Department of Employment and Social Development Act to grant the Minister of Employment and Social Development the authority to collect and use Social Insurance Numbers for the purposes of administering or enforcing any Act, program or activity in respect of which the administration or enforcement is the responsibility of the Minister.
Division 15 of Part 4 amends the Canada Labour Code in respect of leave related to the death or disappearance of a child to, among other things, increase the maximum length of that leave from 104 weeks to 156 weeks and to repeal paragraph 206.5(4)(b) of that Act.
Division 16 of Part 4 amends the Immigration and Refugee Protection Act to provide that a claim for refugee protection made by a person inside Canada must be made in person and, with regard to a claim made by the person other than at a port of entry, that the Minister of Citizenship and Immigration may specify the documents and information to be provided and the form and manner in which they are to be provided.
Division 17 of Part 4 amends the Immigration and Refugee Protection Act to clarify that the Minister of Citizenship and Immigration may give instructions in respect of an application to sponsor a person who applies for a visa as a Convention refugee, within the meaning of that Act, or as a person in similar circumstances.
Division 18 of Part 4 amends the College of Immigration and Citizenship Consultants Act to, among other things,
(a) provide that the College of Immigration and Citizenship Consultants may seek an order authorizing it to administer the property of any licensee of the College who is not able to perform their activities as an immigration and citizenship consultant;
(b) extend immunity against proceedings for damages to directors, employees and agents and mandataries of the College, among others;
(c) authorize the College to enter into information-sharing agreements or arrangements with any entity, including federal or provincial government institutions; and
(d) expand the areas in respect of which the Governor in Council may authorize the College to make by-laws.
The Division also makes related amendments to the Citizenship Act and the Immigration and Refugee Protection Act to clarify that any person who is the subject of a notice of violation issued under either of those Acts has the right to request a review of the notice or the administrative monetary penalty set out in the notice.
Division 19 of Part 4 amends the Citizenship Act to, among other things,
(a) grant the Minister responsible for the administration and enforcement of that Act the power to collect biometric information from persons who make an application under that Act — and to use, verify, retain and disclose that information — in accordance with the regulations;
(b) authorize that Minister to administer and enforce that Act using electronic means, including by using an automated system; and
(c) grant that Minister the power to make regulations requiring persons who make an application or who provide documents, information or evidence under that Act to do so using electronic means.
Division 20 of Part 4 amends the Yukon Act to authorize the Minister of Northern Affairs to take any measures on certain public real property that the Minister considers necessary to prevent, counteract, mitigate or remedy any adverse effect on persons, property or the environment.
Subdivision A of Division 21 of Part 4 amends the Marine Liability Act to, among other things,
(a) increase the maximum liability for certain claims involving a ship of less than 300 gross tonnage;
(b) establish the maximum liability for claims involving air cushion vehicles;
(c) remove all references to the Hamburg Rules;
(d) extend the application of the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 to non-seagoing vessels;
(e) provide for public notice requirements relating to the constitution of limitation funds under that Act;
(f) clarify that the owner of a ship is liable for economic loss related to fishing, hunting, trapping or harvesting suffered by an Indigenous group, community or people or suffered by a member of such a group, community or people; and
(g) expand the compensation regime of the Ship-source Oil Pollution Fund to include certain future losses.
Subdivision B of Division 21 amends the Canada Shipping Act, 2001 to, among other things,
(a) expand the application of Part 1 of that Act in relation to certain pleasure craft;
(b) expand the exemption powers of the Minister of Transport and the Minister of Fisheries and Oceans;
(c) allow the owner of a Canadian vessel to enter into an arrangement with a qualified person under which that person is the authorized representative of the vessel;
(d) give the Marine Technical Review Board jurisdiction to make decisions on applications for exemptions from interim orders;
(e) authorize the Governor in Council to incorporate by reference in certain regulations material that the Minister of Transport produces;
(f) broaden the Governor in Council’s power respecting fees, charges, costs or expenses to be paid in relation to the administration and enforcement of matters under that Act for which the Minister of Transport is responsible;
(g) increase the maximum amount of fines for certain offences;
(h) provide authority, in certain circumstances, for the Chief Registrar to refuse to issue a certificate of registry and for the Minister of Transport to refuse to issue a pleasure craft licence;
(i) authorize the Governor in Council to make regulations respecting emergency services;
(j) authorize the Minister of Transport to, among other things,
(i) direct a master or crew member to cease operations,
(ii) authorize the Deputy Minister of Transport to make interim orders in response to risks to marine safety or to the marine environment, and
(iii) direct a port authority or a person in charge of a port authority or place to authorize vessels to proceed to a place selected by the Minister; and
(k) permit designating as violations the contravention of certain provisions of Parts 5 and 10 of that Act and the regulations made under those Parts.
The Subdivision also makes a related amendment to the Oil Tanker Moratorium Act .
Subdivision C of Division 21 amends the Wrecked, Abandoned or Hazardous Vessels Act to, among other things, establish the Vessel Remediation Fund in the accounts of Canada and provide the Minister of Fisheries and Oceans with certain powers in relation to the detention of vessels.
Division 22 of Part 4 amends the Canada Transportation Act to, among other things,
(a) allow the Governor in Council to require air carriers to publish information respecting their performance on their Internet site;
(b) permit the sharing of information to ensure the proper functioning of the national transportation system or to increase its efficiency, while ensuring the confidentiality of that information;
(c) allow the Minister of Transport to require certain persons to provide certain information to the Minister if the Minister is of the opinion that there exists an unusual and significant disruption to the effective continued operation of the national transportation system;
(d) establish a new zone in Manitoba, Saskatchewan and Alberta, in which any interswitching that occurs is subject to the rate determined by the Canadian Transportation Agency, for a period of 18 months; and
(e) broaden the scope of the administrative monetary penalties scheme.
Division 23 of Part 4 amends the Canada Transportation Act to, among other things,
(a) broaden the authority of the Canadian Transportation Agency to set fees and charges to recover its costs;
(b) replace the current process for resolving air travel complaints with a more streamlined process designed to result in more timely decisions;
(c) impose a greater burden of proof on air carriers where it is presumed that compensation is payable to a complainant unless the air carrier proves the contrary;
(d) require air carriers to establish an internal process for dealing with air travel claims;
(e) modify the Agency’s regulation-making powers with respect to air carriers’ obligations towards passengers; and
(f) enhance the Agency’s enforcement powers with respect to the air transportation sector.
Division 24 of Part 4 amends the Customs Act to, among other things,
(a) allow a person arriving in Canada to present themselves to the Canada Border Services Agency by a means of telecommunication, if that manner of presenting is made available at the customs office at which they are presenting themselves; and
(b) subject to the regulations, require that the operator of a commercial aircraft arriving in Canada ensure that baggage on board the aircraft is transported without delay to the nearest international baggage area.
The Division also makes a related amendment to the Quarantine Act .
Division 25 of Part 4 amends the National Research Council Act to, among other things, provide that the National Research Council of Canada may procure goods and services, including goods and services relating to construction and to research-related digital and information technology. It also establishes a new Procurement Oversight Board.
Division 26 of Part 4 amends the Patent Act to, among other things,
(a) authorize the Commissioner of Patents to grant an additional term for a patent if certain conditions are met;
(b) authorize the Governor in Council to make regulations respecting the number of days that is to be subtracted in determining the duration of an additional term; and
(c) authorize the Commissioner of Patents and the Federal Court to shorten the duration of an additional term if the duration as previously determined is longer than is authorized.
Division 27 of Part 4 amends the Food and Drugs Act to extend measures regarding therapeutic products to natural health products in order to, among other things,
(a) strengthen the safety oversight of natural health products throughout their life cycle; and
(b) promote greater confidence in the oversight of natural health products by increasing transparency.
Division 28 of Part 4 amends the Food and Drugs Act to, among other things, prohibit
(a) the sale of a cosmetic unless its safety can be established without relying on data derived from a test conducted on an animal that could cause pain, suffering or injury, whether physical or mental, to the animal, subject to certain exceptions;
(b) the conduct of a test on an animal that could cause pain, suffering or injury, whether physical or mental, to the animal if the purpose of the test is to meet a legislative requirement that relates to cosmetics; and
(c) deceptive or misleading claims, on the label of or in an advertisement for a cosmetic, with respect to testing on animals.
Division 29 of Part 4 enacts the Dental Care Measures Act .
Division 30 of Part 4 amends subsection 41(1) of the Canada Post Corporation Act , in response to the decision in R. v. Gorman , to limit the Canada Post Corporation’s authority to open mail other than letters.
Division 31 of Part 4 expresses the assent of the Parliament of Canada to the issuing by His Majesty of a Royal Proclamation under the Great Seal of Canada establishing for Canada the applicable Royal Style and Titles.
Division 32 of Part 4 amends the Public Sector Pension Investment Board Act to provide that the Public Sector Pension Investment Board may incorporate a subsidiary for the purpose of providing investment management services to the Canada Growth Fund Inc. It also amends the Fall Economic Statement Implementation Act, 2022 to increase the amount that may be paid out of the Consolidated Revenue Fund on the requisition of the Minister of Finance for the acquisition of shares of the Canada Growth Fund Inc. and to provide that the Canada Growth Fund Inc. is not an agent of His Majesty in right of Canada.
Division 33 of Part 4 amends the Office of the Superintendent of Financial Institutions Act , the Trust and Loan Companies Act , the Bank Act and the Insurance Companies Act to, among other things,
(a) expand the mandate of the Office of the Superintendent of Financial Institutions to include the supervision of federal financial institutions in order to determine whether they have adequate policies and procedures to protect themselves against threats to their integrity or security; and
(b) expand the Superintendent of Financial Institutions’ powers to issue directions to, and to take control of, a federal financial institution in certain circumstances.
It also makes a consequential amendment to the Winding-up and Restructuring Act .
Division 34 of Part 4 amends the Criminal Code to, among other things, lower the criminal rate of interest calculated in respect of an agreement or arrangement and to express that rate as an annual percentage rate. It also authorizes the Governor in Council, by regulation, to fix a limit on the total cost of borrowing under a payday loan agreement. Finally, it provides for transitional provisions.
Division 35 of Part 4 amends the Employment Insurance Act to extend, until October 26, 2024, the increase in the maximum number of weeks for which benefits may be paid in a benefit period to certain seasonal workers.
Division 36 of Part 4 amends the Canadian Environmental Protection Act, 1999 to, among other things,
(a) establish an account in the accounts of Canada to be called the Environmental Economic Instruments Fund, for the purpose of administering amounts received as contributions to certain funding programs under the responsibility of the Minister of the Environment; and
(b) replace references to “tradeable units” with references to “compliance units”.
It also makes consequential amendments to the Canada Emission Reduction Incentives Agency Act .
Division 37 of Part 4 amends the Canada Deposit Insurance Corporation Act to clarify that the Canada Deposit Insurance Corporation may administer any contract related to deposit insurance entered into by the Minister of Finance and to allow the Minister to increase the deposit insurance coverage limit until April 30, 2024.
Division 38 of Part 4 amends the Department of Employment and Social Development Act to, among other things,
(a) establish the Employment Insurance Board of Appeal to hear appeals of decisions made under the Employment Insurance Act instead of the Employment Insurance Section of the General Division of the Social Security Tribunal; and
(b) eliminate the requirement for leave to appeal decisions relating to the Employment Insurance Act to the Appeal Division of the Tribunal.
It also makes consequential amendments to other Acts.
Division 39 of Part 4 amends the Canada Elections Act to provide for a national, uniform, exclusive and complete regime applicable to registered parties and eligible parties respecting their collection, use, disclosure, retention and disposal of personal information.

[Cara-Marie O'Hagan, Executive Director, Policy, Law Society of Ontario]

Thank you very much, Mr. Chair. It's nice to see you again.

I'm here with my colleague, Matthew Wylie, from the Law Society of Ontario. We are speaking to the new mandatory disclosure provisions in Bill C-47.

I'd like to start with a few words about the Law Society of Ontario and the obligations of our members.

The law society regulates almost 70,000 lawyers and paralegals in the public interest. We protect the public, in part, by setting and enforcing standards of ethical conduct for lawyers. Lawyers have duties to keep client information confidential, to protect the client's privilege, to avoid conflicts of interest with their clients and to avoid assisting the client in dishonest or illegal conduct. These duties, along with the legal protection afforded to solicitor-client privilege, allow for the free and frank exchange of information between lawyers and their clients. Most importantly, they enable lawyers to serve as safeguards in the legal system. Clients can seek legal counsel with the benefit of full disclosure; in response, the lawyer provides advice that ensures the bounds of the law are protected and adhered to.

This dynamic is undermined by the proposed amendments to the mandatory disclosure rules in the Income Tax Act. As you are aware, the proposed amendments significantly broaden the instances in which lawyers would be required to report to the CRA on certain client transactions. They impose new reporting requirements on lawyers. The amendments could impact a significant number of transactions conducted daily in large and small law offices across the province.

In many cases, the amendments could work like this: The lawyer provides advice that the transaction—the one the client is engaged in—is compliant with the Income Tax Act. The lawyer could be required to report the transaction to the CRA, so the CRA could then challenge the lawyer's conclusion after the fact, to the detriment of the lawyer and the client. If the lawyer does not report, they and their client can face very significant penalties.

In our view, these amendments are counterproductive to the overall goal of encouraging compliance with the requirements of the Income Tax Act. If these amendments are adopted, clients may fear that their lawyers will report confidential information to the CRA. They may well avoid the essential step of seeking legal advice to determine whether their proposed course of action is, in fact, compliant, or they may withhold information that prevents the lawyer from providing the proper legal advice. In either case, the taxpayer will not have the benefit of the lawyer properly advising them on their existing reporting obligations in the legislation.

Although we recognize the protection afforded to solicitor-client-privileged information in the proposed amendments, the extent of the privilege is uncertain and, in our view, not a solution in this situation. We are also concerned about the constitutional validity of the new proposed mandatory disclosure provisions. In the case of Canada v. the Federation of Law Societies, the Supreme Court found “as a principle of fundamental justice that the state cannot impose duties on lawyers that undermine their duty of commitment to their clients' causes.” The court said this duty “is essential to maintaining confidence in the integrity of the administration of justice.” The proposed amendments require lawyers to report to the CRA on their clients' transactions, so the CRA can then scrutinize the transactions for impropriety. This requirement imposes an obligation on lawyers to act contrary to their “commitment to their clients' causes.”

The Law Society of Ontario offers two proposals for the committee to consider as fixes to these significant concerns.

Our preferred solution is to amend the definition of “advisor” under clause 68 and clause 69 of Bill C-47 to specifically exempt legal professionals from the reporting requirements when they are acting in their capacity as legal counsel.

The second option would be to maintain the relieving rule for lawyers, so that lawyers' compliance with the reporting requirements could be established by the lawyer's advising their client of the obligation to report the transaction to the CRA.

I'd be happy to provide further details about these solutions in the Q and A. Those are my remarks. Thank you very much for your time.

[Michael Bernard, Deputy Director, Humane Society International/Canada]

Thank you very much to the chair and members of the committee for the opportunity to provide comments on Bill C-47, specifically on the proposed amendments to the Food and Drugs Act pertaining to cosmetics testing on animals.

I am the deputy director of Humane Society International/Canada, part of Humane Society International, which has a presence in more than 50 countries, making us one of the largest animal protection organizations in the world. Our organization has been working for a decade in Canada to achieve these historic measures for animals, so we are absolutely delighted to see Canada moving forward with this critical legislation.

I am also very proud to co-represent with Darren a coalition of industry, animal protection, and retail companies that have been working together for the past few years to build alignment and consensus on the principles of this legislation. We sent a letter of support for this legislation to the committee by email, but unfortunately, due to time constraints, I was informed that there was not enough time to have it translated before these proceedings, so I would like to take the opportunity to read the letter into the official record.

The letter is dated May 17, 2023:

Dear Chair and Committee Members,

We are writing to you today to convey our full support for a ban on cosmetics animal testing as proposed in Bill C‑47.

Who We Represent - A Broad Consensus of Industry, Animal Advocates, & Retailers.

The collective of our organizations represents a broad range of stakeholders including the cosmetics industry (150+ companies represented by Cosmetics Alliance Canada), animal protection advocates (Humane Society International/Canada, Animal Alliance Canada, Cruelty Free International) and their retailer partners (Lush Cosmetics, The Body Shop).

Since this issue was first raised in Parliament through a Private Member's Bill in the Senate in 2015, our group of key stakeholder organizations have been working together, and with Health Canada, to advance workable legislation.

The legislative language in Bill C‑47 pertaining to a ban on cosmetics animal testing is consistent with the policy approach that our group has long been advocating for in discussions with Health Canada; that a Canadian ban align with the principles of the E.U. ban and the necessary amendments be drafted by Health Canada to ensure they work within the Canadian regulatory context.

We are thrilled to see this legislation...introduced and look forward to seeing its passage without issue into law.

Of note, Canada will be hosting the 2023 Animal Alternatives World Congress on August 23-27, 2023, in Niagara Falls, Ontario. Government, industry, and other stakeholders will be participating in this important international event. This will be an ideal opportunity to highlight Canada as a leader in the development of animal testing alternatives and the banning of unnecessary animal testing on cosmetic products.

This letter has been signed by representatives of the organizations that I mentioned earlier.

What would this legislation do? This legislation would prohibit testing cosmetics on animals in Canada, selling cosmetics that rely on new animal testing data to establish the products' safety—with some exceptions—and false or misleading labelling pertaining to the testing of cosmetics on animals.

These measures would bring Canada into line with the 43 countries that have already introduced similar bans or restrictions, including the United Kingdom, the European Union, India, South Korea, Taiwan, New Zealand, Australia and many others. In addition, 10 U.S. states have also enacted bans, and further federal measures are in development in the U.S. and elsewhere.

Of course, there is tremendous public support for these measures here in Canada. In 2018, a public petition with over 630,000 Canadian signatures supporting a ban on cosmetics testing on animals was delivered to Parliament Hill.

Polling conducted in 2019 by Insights West found that 87% of Canadians support a ban on animal testing for cosmetic products.

It is important to note that modern non-animal methods are available for testing cosmetic safety issues and have been shown to predict human responses in the real world better than the animal tests they replace, so there is simply no need for animal testing for cosmetics in this day and age.

This legislation—and the history of this campaign—truly shows the great things that can happen when government, political parties across all party lines, industry, the non-profit sector and the public work together to create a better future.

Thank you, again, to the committee and all parliamentarians and senators for coming together on this important issue.

[Anne Kothawala, President and Chief Executive Officer, Convenience Industry Council of Canada]

Thank you, Chair, and thank you to the members of the committee for inviting our association to speak with you this evening.

My name is Anne Kothawala, and I serve as the CEO of the Convenience Industry Council of Canada, the CICC. We are the voice of the country's 23,000 local convenience stores, employing more than 200,000 Canadians.

Allow me to paint a brief picture of the economic realities facing our local businesses.

Over the past two years, we have seen our store locations decline by 5%. That translates into three convenience stores closing their doors for good every single day. That not only impacts our employees and their families, but also affects the entire community, particularly in rural and remote areas, where we're the only source of essential goods.

We are heavily regulated businesses, so the future of our stores in Canada is heavily dependent on smart government policies.

We are deeply concerned by the inaction on credit card interchange fees and contraband tobacco in the 2023 budget. In the last 12 months, credit card fees have increased by 55%. These fees represent the second-highest cost to Canada's convenience stores, next only to payroll.

We also face a double whammy on credit card fees, as we pay both the interchange fee on the product sold itself plus an interchange fee on the tax of that product. This is an issue that our stores have worked with the federal government on since its initial campaign promise to address fees in 2019.

Despite years of work on this file, it is now clear that the government has caved to pressure from card networks and financial institutions. Make no mistake: The vast majority of small businesses will be excluded from this policy. Today's announcement doesn't change the fact that the government is allowing credit card companies and banks to force retailers to pay for their credit card loyalty programs.

The details of the scheme announced earlier today will help only the smallest micro-businesses in Canada. It treats most local businesses no differently than large corporations like Walmart or Costco. What's worse is that large corporations like those I just mentioned have the negotiating power to demand better rates than small businesses, so we are actually worse off than these major corporations.

No high-volume, low-margin business will be able to access this new rate, and even qualifying businesses will see, at most, a $1,000 return to their bottom line. This is hardly the relief that we were promised.

This approach also penalizes our local businesses by asking them to pay for the privilege of being a tax collector for government. Tax alone accounts for 42% of our sales. Because convenience stores sell heavily taxed products like gasoline, tobacco and alcohol, we are further penalized by this short-sighted approach.

I'd like to share with you a quote from a local retailer, Jamie Arnold, who is a CICC board member and with Ontario-based Little Short Stop, on today's announcement. He said it was very disappointing to him as a small convenience retailer, because he wouldn't qualify, plain and simple. He said the government had promised to address this issue, but had not delivered. During the pandemic he kept stores open despite a massive decrease in sales, and it would have been nice to see the government acknowledge the essential role convenience stores play in communities by reducing their second-highest cost of doing business.

Bill C-47 presented an opportunity for the government to make good on its promise and do much more to rectify these punitive fees on our businesses. Instead, the government has caved to pressure from card networks and financial institutions, leaving local businesses like ours holding the bag.

While the government missed the mark today, there are other steps it can take to help our stores on interchange fees, namely, removing the interchange fees charged on the HST/GST portion of the sale. The government could also fix rates for fuel purchases made by credit cards to 10¢, which is in line with utility payments. I'm happy to speak to either of these proposals in the Q and A.

I would be remiss not to mention another area of inaction in Bill C-47, which is on the issue of illegal, untaxed tobacco. The proliferation of contraband contributes to organized crime and results in millions of dollars in lost tax revenue for governments annually. Federal leadership is needed on this issue, which was once contained to central Canada but is now a national problem.

Members, as you can see, there are no shortage of challenges facing our businesses. We strongly urge that the budget be further strengthened by revisiting the approach to interchange fees and by dedicating resources to addressing the long-standing issue of illegal tobacco, both of which impact our stores nationally.

I look forward to answering any questions you may have and discussing solutions with you on these issues.

Thank you.

[Kaven Bissonnette, Vice-President, Centrale des syndicats démocratiques]

Thank you very much, Mr. Chair.

Thank you for the invitation.

I am the vice-president of the Centrale des syndicats démocratiques, the CSD, and I'm here to present the written brief jointly with the three other labour federations in Quebec: the Confédération des syndicats nationaux, or CSN, the Fédération des travailleurs et travailleuses du Québec, or FTQ, and the Centrale des syndicats du Québec, or CSQ. Together, our four labour federations represent more than 1,165,000 workers in all regions of Quebec, in both the public and private sectors.

In a joint brief, the federations are presenting a series of recommendations to the federal government to adjust the employment insurance program to the reality of today's work organization, pending a major reform of the program.

The program is broken, complex and inaccessible, and it also provides inadequate benefits. Before the pandemic, only 40% of unemployed workers in Canada were entitled to benefits. Part-time workers—especially part-time workers who are women—are struggling to accumulate enough hours of work to qualify for benefits.

We therefore recommend that a comprehensive modernization of the Employment Insurance Act be introduced and passed as quickly as possible in order to improve the program and meet the needs of workers as quickly as possible.

With regard to unemployment and seasonal work, we need to end the EI black hole. The weeks between the end of employment insurance benefits and the start of employment are what we call the “black hole”. To try to contain the EI black hole, the government adopted temporary rules in 2018. The government introduced a pilot project in 13 regions where EI is characterized by significant seasonal economic activity and high unemployment. This pilot project allows unemployed workers considered “seasonal” to benefit from five additional weeks of benefits, for a maximum of 45 weeks. The special measures were to end on October 28, 2023. Budget 2023 proposes extending these supports until October 2024.

For the labour federations, it's obvious that the end of the pilot project would be catastrophic. In those regions, workers choose to work in seasonal industries because full-time year-round work is often not possible or accessible, despite the many solutions put in place in the industries to extend the working season. People working in seasonal industries generally have long working weeks in the high season, and their work is often intensive and strenuous. They are the backbone of industries that are vital to communities, which unfortunately rely on a fragile and undiversified economic fabric. This situation is common across Canada.

The average duration of a seasonal job is less than 16 weeks, and the average duration of benefits is 17 weeks. The extra five weeks do not help fill the black hole for most seasonal workers, unless they live in a region where the unemployment rate is higher than 16%.

Quebec's labour federations reached a consensus containing 15 requests to reform the program, for example, to introduce a universal standard of eligibility for benefits after 420 hours or 12 weeks of work, and to provide a minimum of 35 weeks of benefits.

We also recommend that, pending a comprehensive reform of the EI program, measures relating to workers in seasonal industries be amended to make an additional 15 weeks of benefits available to eligible claimants, and that the criteria for selecting claimants eligible for additional benefits be reviewed, so that it's no longer based on an individual's previous benefits, but rather on the employer's track record or the reason for seasonal layoffs. In other words, a person working for a seasonal company would automatically be eligible, given the nature of the company's activities. In addition, the calculation of the benefit rate would have to be calculated on the best 12 weeks of work, regardless of the regional unemployment rate, and additional benefits for seasonal work should be made permanent.

Furthermore, the creation of an appeals board is another important element in having a true tripartite appeals system. When it was announced in spring 2019 that an appeals board would be created to hear EI appeals, the Quebec labour federations welcomed this decision. Four years on, the situation remains unresolved.

Some progress has been made. First of all, all board members will have part-time worker status. This will ensure that the difference in status between part-time and full-time members doesn't lead to different levels of commitment and effectiveness. Second, Bill C‑47 provides that appeals will be heard in the appellant's region, except in prescribed circumstances.

However, two major problems persist: the bill doesn't insist on in-person hearings, and the proposed new subsection 43.02(2) of the Department of Employment and Social Development Act states that the executive head of the Board of Appeal, who is responsible for managing the day‑to‑day work of the board, reports “to the Commission, through the Chairperson of the Commission, on the overall performance of the Board of Appeal”.

This means that the board of appeal will not be fully tripartite if its top manager is accountable only to the government representative of the Employment Insurance Commission, and not to the commission as a whole. In this regard, we recommend that the Employment Insurance Board of Appeal be established.

Still with regard to Bill C‑47, in subclause 43.04(2), we recommend that the words “through the Chairperson of the Commission” be deleted.

We also recommend, in proposed subclause 43.16(2), that “in the format selected by the appellant” be changed to “in person, except in exceptional circumstances”.

Before I close, I'd like to mention one last point concerning workers who have experienced a lockout. A lockout is a unilateral decision by the employer. The workers didn't choose to go through this situation, because the lockout often ends after several months. When these people aren't called back to work, they don't have access to EI benefits because they aren't considered to be employed for the duration of the lockout. It's a situation they can do nothing about, and it puts them in an incredibly precarious financial and social situation.

This needs to be corrected, as do the federation recommendations.

[The Chair, Liberal, Peter Fonseca]

I call this meeting to order.

Welcome, everybody, to meeting number 91 of the House of Commons Standing Committee on Finance.

Pursuant to the order of reference of Tuesday, May 2, 2023, and the motion adopted on May 16, 2023, the committee is meeting to discuss Bill C-47, an act to implement certain provisions of the budget tabled in Parliament on March 28, 2023.

Today's meeting is taking place in a hybrid format, pursuant to the House order of June 23, 2022. Members are attending in person in the room and remotely using the Zoom application.

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

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

For interpretation for those on Zoom, you have the choice at the bottom of your screen of floor, English or French audio. For those in the room, you can use the earpiece and select the desired channel.

I would remind you that all comments should be addressed through the chair.

For members in the room, if you wish to speak, please raise your hand. For members on Zoom, please use the “raise hand” function. The clerk and I will manage the speaking order as best we can, and we appreciate your patience and understanding in this regard.

We have a full room today. It's literally full here, but it's also full on the screen.

We thank all our witnesses. I know it was with very short notice that you had to pull your opening remarks and some of your materials together, but we thank you for doing that for us and for coming before our committee today.

You will be the last set of witnesses the committee will hear on this piece of legislation, so we look forward to hearing your opening remarks, as I said, and your answers to the many questions.

Now I have the opportunity to welcome our witnesses.

We have with us, from the Centrale des syndicats démocratiques, Kaven Bissonnette, who is the vice-president. Also joining us is the union adviser, Francis Fortier.

From the Convenience Industry Council of Canada, Anne Kothawala is with us today. She is the president and CEO. Welcome.

From Cosmetics Alliance Canada, we have Darren Thomas Praznik, who is in my hometown of Mississauga. He's coming to us virtually. He is the president and CEO.

From Humane Society International Canada, we have with us Michael Bernard, who is the deputy director of the organization.

From the Law Society of Ontario, I have an old friend, Cara-Marie O'Hagan. Cara, welcome. It's good to see you. I haven't seen you in many years. It was another life.

Here in the room, we have with us Frederica Carla Anne, also from the Law Society of Ontario, and Matthew Wylie, who is the director of policy.

From the Railway Association of Canada, we have president and CEO, Marc Brazeau. We also have the assistant vice-president of the Canadian Pacific Railway, Nathan Cato, and we have Eric Harvey, who is the senior counsel, regulatory, for the Canadian National Railway Company.

Locally, one of our witnesses is from the Ottawa Food Bank. We have Rachael Wilson, who is the CEO of the organization. Welcome.

Now we're going to have an opportunity for opening statements. We are going to start with the Centrale des syndicats démocratiques.

You have up to five minutes, please.

[Taylor Bachrach, NDP, Skeena—Bulkley Valley, BC]

Thank you, Mr. Chair.

Finishing up on air passenger rights and in the interest of giving credit where credit is due, I wonder if Dr. Lukács could share with the committee which aspects of Bill C-47's portions on air passenger protection he feels the government has gotten right.

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

Thank you, Mr. Chair.

First of all, Mr. Chair, I want to say that I feel you were very harsh with Mr. MacDonald interrupting him the way you did as he laid out his reasoning. You are the timekeeper, but that really shocked me.

My last questions are for you again, Ms. Brazeau. They're related to what you said at the beginning of the meeting and your recommendations for the latest budget.

You talked about the importance of the circular economy and creating a restorative fund. It was mentioned in budget 2023. This initiative is not yet in Bill C‑47, but it's coming. A Conservative colleague has also introduced a private member's bill, and that's really great.

You mentioned food, agriculture, and mobility. Our colleague Mr. MacDonald also talked about them. In Quebec, you're running a major mobility campaign to reduce the size of vehicles, as you said in your presentation.

If you would, I'd like you to remind us of the major action the government could take on mobility to reduce our carbon footprint.

[Taylor Bachrach, NDP, Skeena—Bulkley Valley, BC]

Thank you, Mr. Chair.

Dr. Lukács, we have this legislation in front of us. Based on that legislation, the government promises to craft regulations, but one of the clauses in Bill C-47 empowers the CTA to also establish guidelines setting out the manner and extent to which the regulations are applied, so now we're kind of two steps away from the legislative process.

Do you have concerns about the CTA essentially getting to write their own guidelines for the manner and extent to which these regulations are applied?

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

In the provinces where the federal tax applies, the tax is paid and it must be used for an environmentally friendly project. Right now, if the project is not completed before the end of the year, the money goes back to the government, if I understand correctly. Under Bill C‑47, that money will be put into funds that will enable these projects to be carried out later.

The question is whether this measure will encourage companies to take their time to develop green projects, or whether this is something that you support. I can ask you again in writing to get your opinion. I'm curious.

[Taylor Bachrach, NDP, Skeena—Bulkley Valley, BC]

Thank you, Dr. Lukács.

The government has claimed that Bill C-47 and this new approach to air passenger protections will make this the strongest air passenger protection regime in the world. Do you feel like that's a fair statement, given what you've seen of the legislation?

[Taylor Bachrach, NDP, Skeena—Bulkley Valley, BC]

Thank you, colleagues, for allowing me to sit in on the finance committee.

Shifting our discussion a little bit to the topic of air passenger rights, I want to start by thanking Dr. Lukács for his tireless work on behalf of Canadian air passengers. He does this as a volunteer, and over the past several years has emerged as Canada's foremost consumer advocate in the air passenger space. I think a lot of the advancements that we've seen are due to his work. I'm very pleased that he's joined us today to talk about the portion of Bill C-47 dedicated to this government's attempt to finally fix Canada's air passenger protection regime.

Dr. Lukács, you and I worked closely on developing Bill C-327, the Strengthening Air Passenger Protection Act. I wonder if you could comment a little on the contrast between what is in that private member's legislation and what we see in Bill C-47 today.

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

On that note, Ms. Brazeau, I offer my congratulations to Équiterre on its 30th anniversary. It's amazing how quickly time flies.

My first questions have to do with the Canada Growth Fund and investments in the green economy, namely the $80 billion to support the energy transition announced in the last budget in response to the U.S. Inflation Reduction Act.

I had asked a question of the department on March 30, and we received a reply on May 2 with a breakdown of sorts of the $80 billion amount. We learned that there was $12.5 billion for carbon capture, $17.7 billion for hydrogen production and $25.7 billion for electricity, which includes nuclear, including small power plants and modular reactors.

How do you react to this?

Before hearing your response, I'd like to remind you that, in Bill C-47, the transfer or disbursement of this $80 billion will not happen all at once. First and foremost, two institutions will be created to administer the sums the government plans to invest. As a result, these sums will no longer be under the control of parliament. We, the members of Parliament, the legislators, will no longer be able to vote on these sums.

I'd like to hear what you think about all this.

[Andréanne Brazeau, Analyst, Climate Policy, Équiterre]

Good afternoon, Mr. Chair.

Good afternoon, members of the Committee.

My name is Andréanne Brazeau and I'm a climate policy analyst at Équiterre, one of the country's leading environmental organizations, which this year is celebrating 30 years of environmental and climate action.

Our organization works on four key issues: climate, sustainable mobility, food systems and, finally, the consumer and waste management sector.

Équiterre aims to advance these issues in a way that benefits Canadian families and helps lower the cost of living, while helping to combat the climate crisis and the collapse of life.

Our organization is also a member of the Green Budget Coalition, which includes some twenty Canadian organizations whose mission is to promote a set of recommendations relating to the annual federal budget.

First, Équiterre salutes the various initiatives announced in the latest budget that promote social justice, such as the new Canada Dental Benefit. It also supports all the measures in Bill C-47 that aim to tighten penalties and monitoring to limit environmental damage, as well as measures that encourage the consumption of durable goods.

For example, section 232 of Bill C-47, which amends section 36 of the Customs Tariff Act, proposes to add the General Preferential Tariff Plus to goods originating in a country that complies with international standards relating to sustainable development, labour rights and human rights. Équiterre believes that this is a major step forward in raising the socio-environmental standards of international trade.

Then, more generally, Équiterre believes that the federal government's budget presents several interesting measures for the transformation of our economy, including assistance for the decarbonization of the country's power grids as well as the conditions established for this assistance, particularly with regard to labour and the cost of energy for families. Tax credits in this sector are also good news, especially as they were a key demand of the Green Budget Coalition, of which Équiterre is a member.

The budget announces the government's first steps towards the right to repair, a promising sector given that our economic system needs to be fully transformed to become carbon neutral, circular and more equitable. According to some data, the repair industry's revenues in 2030 could vary between $47 billion and $51 billion and create between 400,000 and 450,000 jobs in Canada.

Équiterre therefore welcomes these first steps, which aim to establish a targeted framework for household appliances and electronics in 2024.

However, as provided for in the Minister of Finance's mandate letter, Équiterre would still have liked to see the immediate introduction of a repair fund or fiscally green measures to encourage the growth of the repair sector, a sector of the future that will enable us to take concrete action to reduce household spending and consumption.

More generally, other items in the budget seem problematic in the context of the climate crisis. First, we feel that investments in the development of carbon capture and storage, an unproven technology, take up an inordinate amount of space in the government's finances this year. These investments divert attention from the real challenge at hand: the just transition to sustainable employment for workers in jobs that are doomed to disappear, at a time when the global economy is in the throes of transformation and Canada is falling behind.

For Équiterre, continuing to invest in the exploration of new hydrocarbon deposits in the Arctic is another inconsistency in the federal budget. Investments in the development of the hydrogen industry, including hydrogen produced from fossil fuels, are also problematic. Hydrogen is a form of energy with limited potential, and a niche product. So we mustn't fall for false solutions to the climate crisis.

On the transport side, it's mainly road transport that is responsible for the sector's greenhouse gas emissions. Équiterre therefore deplores the fact that the latest budget includes no new measures to develop, for example, public transit and active mobility, while the number and size of vehicles on our roads continue to grow.

In short, several elements of Bill C-47 seem interesting to us in terms of facilitating the transition to a carbon-neutral and equitable economy. Nonetheless, much remains to be done to ensure that the industries with the highest emissions contribute to prioritizing their reduction at their source and fostering a more equitable and sustainable society.

Larger sums will certainly have to be disbursed in the future to prepare Canada for the climatic hazards whose effects we are already experiencing from one end of the country to the other, in different, but no less serious ways.

Thank you for your attention and for listening. We'll be happy to answer your questions.

[Dr. Gábor Lukács, President, Air Passenger Rights]

Mr. Chair and honourable members, Air Passenger Rights is Canada's independent, non-profit organization of volunteers devoted to empowering travellers. We have a track record of successfully predicting shortcomings and loopholes in legislation related to air passenger rights.

Five years ago, we testified before the House of Commons and the Senate respective committees and cautioned that the Transportation Modernization Act was inadequate. In 2019, we published a 52-page report with predictions of how airlines would likely exploit the air passenger protection regulations' shortcomings and loopholes. In December 2022, we cautioned that Canada's air passenger protection regime was broken, and we proposed specific legislative amendments as a solution. Mere days later, during the holiday season, Canadians witnessed a second meltdown of air travel that year, compounded by airlines' flagrant disregard for passenger rights under the APPR..

Our predictions are based on the experience of the passengers we help daily in their struggle to enforce their rights. They have been validated by the four years that have passed since the regulations came into force. Today, even the government acknowledges that our air passenger protection regime needs to be substantially strengthened. Unfortunately, the legislative amendments put forward in Bill C-47 have the opposite effect.

First, the government proposes to create a secretive, star chamber-like process for adjudicating consumer disputes between passengers and airlines with no right of appeal. The adjudication will be conducted on the basis of confidential information instead of evidence, with the exclusion of the public and the media. This is unheard of in consumer disputes.

Bill C-47 therefore violates Canadians' freedom of expression and the open court principle guaranteed by section 2(b) of the Charter, as well as the right to a fair hearing in accordance with the principles of fundamental justice, protected by section 2(e) of the Canadian Bill of Rights.

Second, proposed section 85.12 is effectively a Henry VIII clause that allows the Canadian Transportation Agency to change the law while bypassing the system of checks and balances set out in the Statutory Instruments Act. The agency will be able to make and modify guidelines affecting passengers' rights overnight without examination by the Clerk of the Privy Council and the deputy minister of justice, without publication in the Gazette and without scrutiny by Parliament's committees.

Third, Bill C-47 perpetuates existing loopholes and creates a new one. In spite of the government promise to the contrary, the bill retains the “required for safety purposes” excuse for airlines to avoid paying compensation and shunts that excuse into regulations. This made-in-Canada loophole has unnecessarily and disproportionately complicated adjudication of disputes between passengers and airlines.

Since evidence about the reasons for a flight disruption is in the airlines' exclusive control, passengers are at a great disadvantage in enforcing their rights to compensation. Bill C-47, however, shifts the burden of proof to the airlines in such disputes only if the passenger gives up their right to a fair and open hearing before an impartial judge and instead agrees to submit to the star chamber-like process.

Bill C-47 also creates a new loophole. Clauses 467 to 470 would allow airlines that sign a so-called compliance agreement to avoid paying penalties for violating passengers' rights.

To summarize, many of the government's proposed amendments to the Canada Transportation Act miss the mark, do the opposite of their stated purpose and will weaken not only air passenger protection but also fundamental rights in Canada.

We urge you lawmakers to amend division 23 and not to forgo this historic opportunity to create a robust air passenger protection regime in Canada. A suitable model for amending division 23 would be Bill C-327, a private member's bill to harmonize Canada's air passenger protection regime with the European Union's gold standard. Bill C-327 has been endorsed by Canada's leading consumer protection organizations, and it is what Canadians need.

Thank you.

[The Chair, Liberal, Peter Fonseca]

I call this meeting to order.

Welcome, everybody, to meeting number 90 of the House of Commons Standing Committee on Finance. Pursuant to the order of reference of Tuesday, May 2, 2023, and the motion adopted on May 16, 2023, the committee is meeting to discuss Bill C-47, an act to implement certain provisions of the budget tabled in Parliament on March 28, 2023.

Today's meeting is taking place in a hybrid format pursuant to the House order of June 23, 2022. Members are attending in person in the room and remotely using the Zoom application.

I'd like to make a few comments for the benefit of the witnesses and members. Please wait until I recognize you by name before speaking. For those participating by video conference, click on the microphone icon to activate your mike, and please mute yourself when you are not speaking. For interpretation for those on Zoom, you have the choice at the bottom of your screen of floor, English or French. For those in the room, you can use the earpiece and select the desired channel.

I remind you that all comments should be addressed through the chair. For members in the room, if you wish to speak, please raise your hand. For members on Zoom, please used the “raise hand” function. The clerk and I will manage the speaking order as best we can, and we appreciate your patience and understanding in this regard.

Also, members and witnesses, if you are speaking, just make sure the red light is on so that all of what you have to say is captured by the interpreters and by the House.

Let me just begin by thanking our witnesses. I know you didn't have a lot of time before you were contacted to appear before our committee on the BIA, but we do appreciate that you were able to graciously be here for us to provide your testimony. I'll say that in advance on behalf of all the committee members and the clerk, the analysts, the staff and everybody who is here. We really do appreciate it.

With us today from Air Passenger Rights, we have Dr. Gábor Lukács, who is the president of the organization. We also have, from the Chamber of Commerce of Metropolitan Montreal, the president and CEO, Michel Leblanc. From Équiterre, we have Andréanne Brazeau, who is an analyst of climate policy; and from the Macdonald-Laurier Institute we have Philip Cross, who is a senior fellow. Welcome.

Members, I didn't mention this yet, but we have the Canadian Home Builders' Association and the CEO Kevin Lee. We're still having some technical issues with the sound, and we're trying to get that rectified. Hopefully when others have given their opening remarks, we'll be ready for Mr. Kevin Lee to join us. We're also having some technical difficulties with Henderson Brewing and Mr. Steve Himel. We'll also try to rectify that before our last witness speaks and allow Mr. Himel to join us for this panel and make his opening remarks.

With that, we're going to start with Dr. Gábor Lukács of Air Passenger Rights, please, for five minutes.