Budget Implementation Act, 2023, No. 1

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

Sponsor

Status

This bill has received Royal Assent and is, or will soon become, law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

June 8, 2023 Passed 3rd reading and adoption of Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023
June 7, 2023 Passed Concurrence at report stage of Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023
June 7, 2023 Failed Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023 (report stage amendment) (Motion 730)
June 7, 2023 Failed Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023 (report stage amendment) (Motion 441)
June 7, 2023 Failed Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023 (report stage amendment) (Motion 233)
June 7, 2023 Failed Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023 (report stage amendment) (Motion 126)
June 7, 2023 Failed Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023 (report stage amendment) (Motion 122)
June 7, 2023 Failed Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023 (report stage amendment) (Motion 112)
June 7, 2023 Failed Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023 (report stage amendment) (Motion 15)
June 7, 2023 Failed Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023 (report stage amendment) (Motion 3)
June 7, 2023 Failed Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023 (report stage amendment) (Motion 1)
June 6, 2023 Passed Time allocation for Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023
May 2, 2023 Passed 2nd reading of Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023
May 2, 2023 Failed 2nd reading of Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023 (reasoned amendment)
May 1, 2023 Passed Time allocation for Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023

Budget Implementation Act, 2023, No. 1Government Orders

April 25th, 2023 / 6:55 p.m.


See context

Bloc

Caroline Desbiens Bloc Beauport—Côte-de-Beaupré—Île d’Orléans—Charlevoix, QC

Mr. Speaker, the plight of indigenous people is terribly sad. We are talking about housing, of course, but there are still some indigenous people who do not have access to clean drinking water.

The government is congratulating itself on its big investments and fine words about truth and reconciliation, but it still has not given these people clean drinking water, let alone affordable housing. The government would rather stimulate the construction of condos worth $700,000 or $800,000 than help people who need it and who are dependent on government decisions.

I agree with my colleague. We absolutely need to band together and force the government to invest more in affordable housing, particularly for indigenous people.

Budget Implementation Act, 2023, No. 1Government Orders

April 25th, 2023 / 7 p.m.


See context

Bloc

Andréanne Larouche Bloc Shefford, QC

Mr. Speaker, I would first like to remind the member for Winnipeg North that my colleague and I were being sarcastic when we said that everything is just fine and dandy. That is my first point.

My second is that my colleague spoke about employment insurance. I will be more brief than I was earlier, I promise. Employment insurance is vital. The current government is all about fake feminism. By not investing enough in health transfers, it is harming the community groups that work to prevent domestic violence. By failing to invest in EI reform, it is harming women, who are penalized more by the current EI system. That is also true for those who go on maternity leave. The government is all about fake feminism. These investments are being called for.

Budget Implementation Act, 2023, No. 1Government Orders

April 25th, 2023 / 7 p.m.


See context

Bloc

Caroline Desbiens Bloc Beauport—Côte-de-Beaupré—Île d’Orléans—Charlevoix, QC

Mr. Speaker, I absolutely agree with my colleague. I think that she added to my speech, which I had to condense, so I was not able to provide all the detail that I wanted to.

I thank my colleague. That is absolutely right.

Budget Implementation Act, 2023, No. 1Government Orders

April 25th, 2023 / 7 p.m.


See context

Conservative

James Bezan Conservative Selkirk—Interlake—Eastman, MB

Mr. Speaker, I am glad to join the debate on the budget implementation act.

There are some interesting numbers in this budget. Total revenues coming in to the government are $456.8 billion and expenses are $446.6 billion. On the surface, when one looks at that, one would think that is not too bad. There is actually some money kicking around, but the problem is the government has run up our national debt so high that the debt charges alone are just shy of $44 billion this year, and they are going to increase to $50 billion. That is creating a deficit this year of $40.1 billion, which is $10 billion higher than what was originally projected.

Why is the interest rate so high? That is because the government, under the Liberal Prime Minister, has run up our national debt so it is now twice as big as what it was when he took office, at $1.2 trillion. That is a travesty, and it is shameful what the government is doing to our taxpayers today and in the future. Our children and grandchildren are going to have to pay off this spending binge that the Liberals have been on for the last eight years.

As shadow minister of national defence, I want to talk a bit about the expenditures in this budget. If we look at the budget and the estimates today, Liberals are going to spend $26.4 billion. That is down from last year's $27.58 billion. Despite the rhetoric coming from the Liberals, they are not spending more, they are spending less. The Prime Minister, we know from leaked documents, has no intention of ever reaching the NATO target of 2% of GDP being spent on our national defence.

However, the Prime Minister has no problem spending $6,000 a night in luxurious hotel rooms in London. He has no problem wasting hundreds of thousands of dollars of taxpayer money to go on his luxurious vacations in Jamaica and the Bahamas. It relates back to the Prime Minister just not prioritizing our national defence and how important it is, not only in protecting Canadians here at home, but also in standing up for our allies around the world and having serious relationships.

The Conference of Defence Associations Institute just wrote a letter, signed by 60 prominent Canadians. In it, they say, “Years of restraint, cost cutting, downsizing and deferred investments, have meant that Canada’s defence capabilities have atrophied.” They go on to say, “the recent federal budget was largely a summary of previous announcements without any acknowledgement that the Government must accelerate program spending, and make significant additional funding available to address the long-standing deficiencies in military capabilities and readiness.”

Our safety is not a luxury. We have to make sure we are treating national defence like we do in our homes by buying home insurance and fire insurance and paying the premium. Investment in our military is a premium that we have to pay to protect us at home. In the letter from those 60 prominent Canadians, they said, “Canada cannot afford to conduct 'business as usual'”.

Part of the responsibility we have in national defence is to stand up for our democracy and protecting democracies around the world. For 426 days, we have watched in real time the brutal Russian invasion of Ukraine and have witnessed barbaric war crimes and atrocities being committed by Putin's war machine. For 426 days, the people of Ukraine have now only stood up to the Kremlin's genocidal attempt to Russify Ukraine once again.

This is a war of attrition. Vladimir Putin is prepared to play the long game, turning this war into a frozen conflict to let war fatigue overtake western resiliency. Unfortunately, it may be working. I just never dreamed that Canada would be the first ally to show signs of war weariness. One may ask what the proof of that is. In the Liberals' recent budget, the finance minister, surprisingly, offers Ukraine little more than platitudes. So much for her being a champion for Ukraine.

Despite President Zelenskyy asking for more assistance and Ukrainian Prime Minister Denys Shmyhal, who was just here, hoping Canada would donate more armoured vehicles and ammunition, budget 2023 provides only $200 million in new spending in military equipment for Ukraine. Much of this is a bookkeeping exercise to account for the eight Leopard tanks that we have donated to Ukraine. We can only hope that the Canadian Armed Forces will use that money to buy new tanks to replace the ones we just donated.

Regrettably, the Prime Minister and his Liberals have spent our fiscal cupboards bare. After eight years of the Liberal government, our national debt has doubled to $1.2 trillion. Our federal deficit is $10 billion higher, and it will soon reach $50 billion, which is more than what we spend on National Defence. The size of our government is $151 billion bigger than it was in 2015.

The Liberals have increased spending on just about everything in this budget except National Defence. A case in point is that they have spent a whopping $22 billion on consultants. As our Conservative leader pointed out in his reply to the budget, “Now the interest costs on the national debt have doubled. We are spending double the national defence budget on the interest costs on the national debt. It is ridiculous.”

Sadly, well-connected consultants, big bankers and wealthy bond holders will get more from these Liberals than our troops will. This is all bad news for taxpayers, and it inhibits Canada's ability from helping allies such as Ukraine or investing in our National Defence during these troubling times in Europe, the Indo-Pacific and our Arctic. To be clear, as His Majesty's loyal opposition, we have supported the military, humanitarian and financial assistance provided to Ukraine by the government, but Canada's Conservatives believe the government can and must do more to help Ukraine win this war.

Conservatives have strongly advocated to increase the production and exportation of our ethical oil and natural gas, along with other energy products, to Europe to displace the Russian oil and gas that is fuelling Putin's war machine. Since Russia's full-scale invasion of Ukraine 426 days ago, Conservatives have consistently called on the government to send more lethal weapons. In fact, since March 2022, we have been asking the government to donate to Ukraine our armoured ambulances; Harpoon missiles; Role 3 mobile hospitals; sniper rifles; and our soon-to-be-retired fleet of light armoured vehicles, also called LAVs, specifically the Bison, the Coyote and tracked LAVs, also known as M113s.

National Defence confirmed in writing, in its response to an Order Paper question tabled in this House, that it has 149 LAV II Coyotes; 142 M113 tracked LAVs, and 196 LAV II Bisons. These LAVs will soon be replaced with 360 brand new LAV armoured combat support vehicles, which are currently sitting in London, Ontario. Instead of decommissioning our old LAVs and turning them into war memorials or selling them for scrap, the Ukraine defence forces would gladly welcome them. A case in point is that the U.S.A. and Australia donated 130 M113s last summer to Ukraine, and they were crucial in the liberation of Kharkiv.

The Liberals have sadly argued that our Coyotes, Bisons and tracked LAVs are too old, too worn out and have not yet been declared surplus. DND had noted that 62 of the Coyotes were deemed reparable, but they would take 220 days to procure the parts and put them back into service. That was 309 days ago, back in June of last year. Did the Liberal government act? Are we able to donate those LAVs now? Unfortunately, the answer is no, so Ukraine does without.

Regardless of the Liberals' apathy and excuses, I remain confident in the resiliency and ingenuity of the Ukrainian people. I know that if we sent our fleet of older LAVs to Ukraine, the Ukrainians would immediately put them to good use. What works, they would fight with; what does not, they would cannibalize for parts. This is not a novel idea. Just ask our Royal Canadian Air Force. The Liberals stuck it with 18 old, worn-out F-18 Aussie fighter jets, and they had to buy another seven broken fighter jets for the spare parts.

The black, fertile plains of Ukraine are soaked with the blood of millions of innocent people who were murdered during the Holodomor and the Holocaust. We must stand with Ukraine and stop today's genocide being committed by Putin's war machine. Canada must not waiver. We cannot grow weary. We must not falter. During difficult times like these, we remember great leaders such as Sir Winston Churchill, who said in his famous “blood, toil, tears and sweat” speech, “victory at all costs, victory in spite of all terror, victory, however long and hard the road may be; for without victory, there is no survival.” Ukraine must survive. Ukraine must win.

As I said earlier, with respect to National Defence, the Prime Minister does not seem to care. His rhetoric does not match his actions. In the leaked documents that came from the Pentagon that were on the Discord app, it said, “Prime Minister Justin Trudeau has told NATO officials privately that Canada will never meet the military alliance’s defense-spending target”. It goes on to say—

Budget Implementation Act, 2023, No. 1Government Orders

April 25th, 2023 / 7:10 p.m.


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The Deputy Speaker Chris d'Entremont

Order. Even though we are quoting, we cannot say a name, so we are going to back that up to say, “the Prime Minister”.

The hon. member for Selkirk—Interlake—Eastman.

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April 25th, 2023 / 7:10 p.m.


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Conservative

James Bezan Conservative Selkirk—Interlake—Eastman, MB

Mr. Speaker, yes, it was the Prime Minister. The documents go on to say that the “defence shortfalls hinder Canadian capabilities, while straining partner relationships and alliance contributions.” That impacts our bilateral relationships, which not only affects defence and security but also impacts our trading relationships with those partners.

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April 25th, 2023 / 7:10 p.m.


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Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, whether it has been the incredible leadership of the member for Etobicoke Centre, the Deputy Prime Minister or the Prime Minister himself, not to mention the different ministers responsible, whether for defence or foreign affairs, we have been very much on top of the Ukraine file. In many areas, we have led.

In other areas, we continue to work with the United Nations and our allied partners. I think it is somewhat shameful that the member would try to give a false impression that the Government of Canada has not been supportive of Ukraine because, in every way, it has been supportive of Ukraine.

My question to the member has to do with the member making reference to the Government of Canada not hitting 2% of the GDP. Does the member not remember that he was, after all, the parliamentary secretary of defence and it was the Harper government that actually dropped below 1% of Canada's GDP? I can assure the member that this government has never even come close to that, as we get closer to 2%.

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April 25th, 2023 / 7:10 p.m.


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Conservative

James Bezan Conservative Selkirk—Interlake—Eastman, MB

Mr. Speaker, I will remind the member for Winnipeg North that they are going backward, not forward. They went from 1.34% down to under 1.29% of GDP this year.

They have also gotten very creative with their accounting. They added in veterans' pensions, Global Affairs Canada costs and Coast Guard costs, which we never added in. If we added all of those things in when we were government, we would probably have had 1.5% during the time that we were in Afghanistan.

Yes, we did take a bit of a fall in spending after we pulled out because we were balancing the books, something that the government has no plans of ever doing as it continues to saddle our kids and our grandchildren with its reckless spending.

I will just say this on Ukraine: This budget only has $200 million in it. It is nothing for Ukraine. We supported everything that the government has done in the past, but it is doing nothing in this budget, and that is shameful.

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April 25th, 2023 / 7:10 p.m.


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Bloc

Jean-Denis Garon Bloc Mirabel, QC

Mr. Speaker, in one of his recent books, Michael Mann, a physicist at the University of Pennsylvania, said that the oil industry's primary strategy to deal with climate change was first to deny reality. Then, as the consequences of climate change became visible, the industry changed its strategy to mislead the public. It is trying to make us believe that there is hope that new technologies will emerge in a few years and that we will be able to defeat climate change easily.

I would like to know whether my colleague is prepared to accept science and recognize that taxpayer-funded carbon capture strategies are a ploy to mislead taxpayers. Those subsidies and tax credits for carbon capture and storage represent a significant amount of public funds. Is my colleague, who is so concerned about a balanced budget, prepared to rise and take a stand against these subsidies?

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April 25th, 2023 / 7:15 p.m.


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Conservative

James Bezan Conservative Selkirk—Interlake—Eastman, MB

Mr. Speaker, first and foremost, in this budget, there is some money for our Great Lakes, Lake Winnipeg, Lake Manitoba, Lake Simcoe and every other lake across Canada. It is only $650 million spread out over 10 years. That is not an investment in making sure that we protect our freshwater lakes, which are a precious resource.

I was proud that over the time I was a member of Parliament in government, the Lake Winnipeg Basin got over $35 million, just for one lake. This government is not even going to commit that over 10 years for any lake in this country. That is what is disturbing.

I will just say this: The government's idea of reducing carbon emissions is to tax Canadians more, and as a rural Manitoban, as someone with an agriculture background, and as someone who has family that is still farming, I see the impact this is having on our seniors. I see the impact that this is having on farmers. Their costs of production continue to go up. The price of food gets more expensive, and it is all because of the government's tax plan, which is not a carbon plan.

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April 25th, 2023 / 7:15 p.m.


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NDP

Laurel Collins NDP Victoria, BC

Mr. Speaker, I want to raise the issue of support for students. I met with members of the Graduate Students' Society at the University of Victoria. They were hoping for support in this federal budget, and they shared the struggles that many grad students are facing, living on less than $20,000 a year. In addition to skyrocketing rents and groceries, they also have tuition costs. They are going into debt. Low-income students are adding to their undergraduate student loan debt.

I was concerned when I heard a Conservative member, a couple of days ago, say in the House that the government should be charging interest on student loans. That penalizes low-income students. I think we need to do more to support students, not less.

Grad students are asking for an expansion of tri-agency grants and increased awards. They are organizing a national walkout on May 1 to demonstrate how integral they are to institutions and how they are affected by these funding decisions.

Could the member speak to his opinion on how we can better support these students, who are asking the government to invest in the next generation of leaders, often while they are struggling to put food on the table?

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April 25th, 2023 / 7:15 p.m.


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Conservative

James Bezan Conservative Selkirk—Interlake—Eastman, MB

Mr. Speaker, I would say this: The one thing I detest about the student loans program is that it is very much prejudiced against kids who come from farms and small businesses, especially in rural areas. Because of the assets owned by their parents, they do not qualify for a student loan. That works against their ability to get an education, which often ends up costing a lot more because they have to travel great distances and move into cities, where those universities are located. I want to make sure those barriers are removed for all rural students.

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April 25th, 2023 / 7:15 p.m.


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Conservative

Ed Fast Conservative Abbotsford, BC

Mr. Speaker, I quote:

...let me be very clear. We are absolutely determined that our debt-to-GDP ratio must continue to decline and our deficits must continue to be reduced. The pandemic debt we incurred to keep Canadians safe and solvent must [and will] be paid down.... This is our fiscal anchor. This is a line we will not cross.

Who said that? It was our finance minister. A year ago, she made that bold statement, said those bold words, when she proclaimed to the world that Canada's debt-to-GDP ratio would be Canada's anchor and that she would not cross the line of allowing it to increase.

Here we are a year later. Can we guess what happened? Our finance minister took a big step across the line. The issue for Canadians is this: Whom do they trust to manage this country's finances?

We asked for three things. We asked that the war on work and lower taxes for workers be ended, that the inflationary deficits that are driving the sky-high cost of living be ended and that the gatekeepers be removed from home construction across Canada so Canadians can have their dream of home ownership restored. None of those three requests were followed through on by the Liberal government.

I want to touch on a couple of issues, including affordability and inflation, the problem of uncontrolled spending, the staggering cost of government and, finally, economic performance. I do not know if I will have enough time to cover all those issues, but I will do my best.

First is affordability and inflation. Taxes on everything are going up. There is a reason that Canadians should not trust the current government to manage finances. It is a tax-and-spend government under which the cost of living has skyrocketed, including the cost of groceries, gas at the pumps and home heating.

Let us not forget the cost of housing. Under the Liberal government, nine out of 10 Canadians now say that dream of home ownership has disappeared. It is a dream I grew up with. I assumed it was attainable for most, if not all, Canadians. Today, nine out of 10 young Canadians say that dream is no longer a reality for them. A down payment on the average Canadian home, the average mortgage payment and, quite frankly, the average rent payment have doubled in Canada over the last seven years under the Liberal government.

Inflation has eroded what a dollar buys. We see stagnating wages across the country. It is at the point now where the gap between the rich and the poor is growing ever greater. Those with assets are growing richer, whereas those who earn paycheques are growing poorer. We now have one in five Canadians skipping meals just to get by and have enough to eat. Let us think about that. There is a perverse situation in which the poor are going to food banks and asking for medical assistance in dying, or in other words, assisted suicide. This is not because they are sick but because they do not want to go hungry. Is that the perverse situation in which we find ourselves in Canada? The government is expanding access to medical assistance in dying, while at the same time, it is not providing the resources Canadians need to at least survive and have some kind of satisfaction in their lives.

I will talk about the problem of uncontrolled spending, which is a critical issue for this country. Today, the government is spending $151 billion more than it did in 2015, when it came to power and took over from the Harper government. That spending has created unprecedented inflationary pressures that are driving the skyrocketing cost of living for Canadians, who just cannot afford life in Canada anymore. Today, we have a deficit of $43 billion. Does everyone remember when the Prime Minister, back in the 2015 election, promised tiny deficits of no more than $10 billion? Every year since then, budget deficits have been much greater than that.

We all acknowledge that, during COVID, there had to be supports and benefits provided to Canadians to allow them to make it through that very troubling period. However, we are out of COVID now, and the deficits continue despite the government's promises to return to balanced budgets. The Minister of Finance promised we would return to a balanced budget. She promised that last year, just one year ago, and today she broke that promise. Promise after promise after promise is broken by Canada's corrupt and failed government.

The result, of course, is that over the last seven years, Canada's national debt has doubled. In fact, the government has racked up more debt than all other Canadian governments combined. That, by definition, is profligacy. That is irresponsible use of taxpayers' money. The government does not understand that we have to live within our means, the way any Canadian family has to.

I will go on and talk about the staggering cost of government. Under the current government, the federal public service has increased by nearly 31%. In seven years, over 80,000 new federal government positions have been added. I can ask an average Canadian citizen out there whether they are getting better service. Those 80,000 professionals who have been hired by the government must be providing an enhanced level of service. How are passports doing? What a failed program that is. How are visas doing? That is a failed program. Immigration is a failed program. It goes on and on and on. Service is going down, and the cost of government is going up. Who pays for it? Canadians do.

Finally, I will talk about economic performance. One thing I had hoped the government was going to include in the budget was something addressing the issue of competitiveness. We compete with other countries around the world for capital, for investment and for human resources, and we have a productivity gap in this country that continues to grow. Canadians are producing less and less product. That is undermining our national competitiveness, and it is driving inflationary pressures. Every economist will tell us that. There was nothing in the budget to address that gaping hole in our productivity.

I have had so little time to flesh out why we, as Conservatives, cannot support the budget. This is a failed budget. Canada has a failed government, and Canadians deserve better.

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April 25th, 2023 / 7:25 p.m.


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Ottawa West—Nepean Ontario

Liberal

Anita Vandenbeld LiberalParliamentary Secretary to the Minister of International Development

Madam Speaker, just a few minutes ago, in his speech, the hon. member for Selkirk—Interlake—Eastman talked about the fact that the Harper government cut the defence budget in order to balance the books. I notice that my hon. colleague across the way is also talking about balancing the books. It just seems like the Conservatives sometimes want it both ways. They talk about balancing the books, but then on each individual thing, they say, “Oh, but we need to increase that, and we need to increase this.”

I would ask the hon. member opposite this: Does he agree with his party's defence critic that we should cut defence spending to balance the books?

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April 25th, 2023 / 7:25 p.m.


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Conservative

Ed Fast Conservative Abbotsford, BC

Madam Speaker, my colleague across the way just had an opportunity to ask the defence critic that question.

I would suggest to the member that it was her finance minister who, last year, said that she could balance the budget in four years. How would she have done that? It would have required controlling spending and being responsible with taxpayer dollars, which is something the finance minister has been unable to do. That is why we will not support an irresponsible budget.