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.

Budget Implementation Act, 2023, No. 1

[René Villemure, Bloc, Trois-Rivières, QC]

Mr. Speaker, I thank my colleague for his speech. We have been serving together on the Standing Committee on Access to Information, Privacy and Ethics for some time now, and I tend to really value his judgment.

I would like to ask him the following question. In his opinion, with all the experience he has, is this a good budget or a bad budget?

[John Brassard, Conservative, Barrie—Innisfil, ON]

Mr. Speaker, I want to thank my colleague for his question.

I tried to lay out, as best I could, the reasons I cannot support the budget. There are many of them, not the least of which is the carbon tax and the disproportionate effect it has on the people and the businesses I represent in Barrie—Innisfil.

One of the things that is extremely concerning for me, which was not really in the budget, related to the Canada summer jobs program. We saw that cut by a third this year, yet we see contracts, to companies like McKinsey and others, to the tune of $21 billion in total contracts. Why are we taking away from the future and work experience that young people are getting to apply down the line, yet outsourcing and putting a priority on government contracts for friends and connected insiders of the Liberal Party?

I am really disappointed in the Canada summer jobs program and the cut in funding. I know many of those people who would benefit, particular the kids, are really disappointed.

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

Mr. Speaker, I think the hon. member and I agree that the current government bears a lot of responsibility for the state of the current housing market, which is the worst that it has ever been. I think we differ in some of the ways in which we say the government is responsible for that.

I hear the Conservative leader talk a lot about how government spending is responsible for inflation in the housing market. As New Democrats, we look at housing and we see the role of massive private investment, corporate landlords that are gobbling up buildings with affordable units, superficially renovating them and jacking up the rent. We see real estate investment trusts doing the same. We see a lot of investor activity that is actually driving up prices in the real estate market. I do not see how government spending is playing a role. We know that, in fact, the government is not building enough non-market housing options, and we need to build more in order to address supply.

Can we hear the Conservatives talk about private investment activity in the housing market, the role it is playing and the things the government can do to curtail that as a way of actually getting out of the housing crisis, or are they going to continue to talk about government spending as if that is what is driving the housing crisis when it is not?

[John Brassard, Conservative, Barrie—Innisfil, ON]

Mr. Speaker, I think the challenge in the question is we hear a lot of announcements about spending, but see very little in the way of actual builds. I have got a great example of that and it deals with the rapid housing initiative.

The member for Barrie—Springwater—Oro-Medonte and I sent a letter to the housing minister. There was a rapid housing initiative, a critical project in Barrie, that was supported by Redwood Park Communities, the City of Barrie, Barrie Police Service and the County of Simcoe, about renovating the Travelodge hotel and making it into affordable housing units.

We supported this initiative. We did not even hear back from the Minister of Housing. I think the County of Simcoe heard back to say the application was being rejected. I do not know what the basis was, but that is an example of great announcements, but very bad and poor delivery.

[Peter Fragiskatos, Liberal, Parliamentary Secretary to the Minister of National Revenue]

Mr. Speaker, it is a pleasure to join the debate tonight on the budget implementation act, BIA, as we always do around this time of year.

First of all, let me simply say that budget 2023 is one that delivers for the country and for communities. We cannot talk about the BIA without talking about the budget.

I will spend time tonight talking about climate change and how the government is responding to that threat. Rick Smith, the president of the Canadian Climate Institute, a respected organization on the environmental side, that is known across the country, said that this “is the most consequential budget in recent history for accelerating clean growth in Canada”. I could fill this speech with the responses of stakeholders right across the country but that really, I think, puts into sharp focus what the budget helps to advance. Certainly the BIA takes that vision and puts it into place in a number of different ways on the climate change side, as it must.

It must because it is the central challenge of our time. We have just overcome the pandemic. We have not overcome it entirely, of course, but what we lived through was the challenge of the moment. The challenge of our time still remains climate change. It is a moral issue, it is a security issue and it is also an economic issue. In my time tonight, I want to focus on the economic aspect and relate it back to the region that I am from, southwestern Ontario and specifically the city of London.

The budget, I think, stands out for a few different reasons. First of all, for me at least, it really stands out because it actually invites the private sector in as a partner, rather than keeping them out as some, maybe on the left, if I can just be general about it, have pushed for, not thinking that there is a role for the private sector. There is in fact a role for the private sector. We have to encourage that. We can encourage it through various policy mechanisms like the government has done in this budget.

There is a 30% refundable tax credit, for example, that really is historic in this country. It does prompt an agenda that leads to industrialization on the green side. I do not think it is out of place now in democracies, including our own, to talk about a green industrial revolution that is taking shape in front of us. Things like this refundable tax credit that I just mentioned do help in that regard. It can be applied toward investing in new machinery that will be used in the manufacture of clean tech, that will also be used to process and recycle critical minerals. How blessed we are to be a power. I do not think it is out of place to use that word. We are a power when it comes to the issue and the question of critical minerals; lithium, cobalt, manganese, nickel and graphite. All of these are found in abundance in Canada.

A friend of mine put it well the other day. He said that Canada has been blessed with natural resources: under the earth we have wonderful resources and above the earth, in terms of human potential and human talent; we ought to bring the two together. I think this budget allows for that.

This is another crucial point: Accessing the credit will require companies to pay their workers a strong wage. I think that is absolutely vital if we are going to, as a government and as a country, put measures on the table that incent companies to get involved. It is quite lucrative, a 30% refundable tax credit. Then there is an onus on them to do right by their workers, at least in terms of ensuring good wages and good working conditions. This is, as the Minister of Labour himself put it, a worker's budget in many different ways, but this proves the point as well.

In southwestern Ontario, the region I am proudly from, policies like this can help to add to the green transformation that is already taking shape. I point to the community of Ingersoll, just down the road from London, and CAMI, and the incredible work that is happening there to ensure electric vehicle production and delivery vehicles in particular that are being manufactured with the help of this government. It is employing people. It is adding to the economy and, as I say, it is something that speaks to the green transition that is taking shape in the region.

Battery production in Windsor is a project that will unfold between LG Energy Solution and Stellantis. I want to commend my colleague, the MP for Windsor—Tecumseh, for all the work he did to help secure that investment. It was a number of months ago now, but it is still fresh in the minds of those in Windsor who saw an auto sector not collapse but certainly take an enormous hit and have devastating effects on the community of Windsor and the surrounding area. Something like this injects hope again.

Of course we have the example that was announced last week. It was spoken about at length in this House, with merit. It is what happened in St. Thomas with the investment from Volkswagen. That is truly historic for the region certainly and for the country.

Before talking about its significance, I want to thank those at the federal level and the provincial level for making this happen. We need to do all we can to keep up with what the Biden administration is doing, and the Inflation Reduction Act makes it absolutely necessary for governments to show an interest by putting money on the table to get companies to locate to their area and provide jobs through production.

I give thanks to the Prime Minister; the Minister of Innovation, Science and Industry; Premier Ford; Minister McNaughton, the minister of labour at the provincial level; Minister Fedeli, the minister responsible for economic development in Ontario; my colleague, the member of provincial parliament, Rob Flack; and the member of Parliament for Elgin—Middlesex—London, who did a great deal to advance this on behalf of her community. I thank Mayor Joe Preston and St. Thomas City Council as well.

St. Thomas is just down the road from London and will certainly benefit. There are 3,000 direct jobs to be created when the plant opens in just a few years and up to 30,000 indirect jobs. Think of the construction possibilities there in a plant that will occupy a space the size of close to 400 football fields. Over a 30-year period, it is expected $200 billion in overall economic impact will be seen.

This is crucial, and I will end on this point. In the 2000s, the London region and the wider southwestern Ontario region was devastated by plant closures. Ford in Talbotville, which is near Thomas; Electro-Motive Diesel in London; McCormick-Beta Brands, which produced candy; Kellogg's; Heinz in Leamington; Smucker in Dunnville and Dutton; and Lance Canada, which produced cookies in Cambridge, all closed.

It was devastating. Thousands of jobs were lost. Families were not only impacted in so many situations, they were absolutely devastated. Social consequences including a rise in mental health challenges and addiction challenges followed. I cannot say enough about how harmful that was, but now we have hope, an opportunity to turn a corner, and we are doing exactly that.

I am thankful for the opportunity to articulate the interests of my community tonight and the surrounding region. I look forward to questions on what I think is a great BIA and a great announcement in St. Thomas.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Mr. Speaker, it is always good when a member of Parliament talks about his riding on the national level and provides concrete examples. On the other hand, we need to recognize this budget that the member will support has no plan to get back to a balanced budget. We need to remember in 2015 this party was elected saying that there would be three small deficits, a $10-billion maximum and then a zero deficit in 2019. This promise was put aside; it was put in the garbage.

Is the member concerned about the fact that we have deficits and debts that one day we will need to pay back? When does he think the government will pay it back? We are living beyond the budget that we have now.

[Peter Fragiskatos, Liberal, London North Centre, ON]

Mr. Speaker, I have a great deal of respect for my colleague. However, we disagree on this issue.

Canada's fiscal situation is a very important reality for the House and for our country.

Canada right now, if we look at the G7 countries, has the lowest deficits, has the lowest debt, if we use the debt-to-GDP ratio as the key metric, which we should. The IMF is clear on that, that this is the key metric to look at.

I would look back to previous Conservative governments which, far from balancing budgets, have only run up deficits and added to the debt.

It has been a fiscally responsible approach and we will continue with this. We have a very proud record to look at.

[Lori Idlout, NDP, Nunavut, NU]

Uqaqtittiji, I would like to ask the hon. member, in the budget implementation act, what he has seen that invests in indigenous peoples.

[Peter Fragiskatos, Liberal, London North Centre, ON]

Mr. Speaker, I have not had a very good chance to get to know the hon. member, but I know that she is held in very high regard by members throughout every party in the House. I have only heard good things about the committee work that she has contributed. I have to say that every question she has put forward, including this one, have been ones that are thoughtful.

If one looks at the overall budget and looks at the BIA as well, they will see a government that continues the effort to advance the reconciliation agenda. We do so by looking at the partnership that exists between the federal government and indigenous communities, who are leading the way in so many different ways.

In fact, one of the reasons that Volkswagen, I think, ended up making the decision to invest, as they did in St. Thomas, is the approach that the overall country and certainly this government have taken to reconciliation, one that puts partnership front and centre.

Other democracies certainly had the ability to attract the investment, but might not be doing what Canada is doing on the reconciliation side. That is something that bears emphasis. There is so much in this budget that pushes the reconciliation agenda further and we need to continue with that.

[Chad Collins, Liberal, Hamilton East—Stoney Creek, ON]

Mr. Speaker, I am happy that my hon. colleague raised the green investor revolution. I think those were the words he used.

The example he provided was the investment that was recently made into the Volkswagen plant and what will happen in St. Thomas, which is very similar to the investments our government has made in Hamilton as it relates to ArcelorMittal Dofasco and the $400-million investment we have made to get them off coal and begin their process of making green steel.

I know what that means to my community in terms of employment, tax assessment, all of the spin-offs that come with it, and, of course, there is the environmental benefit.

I am wondering if he could comment on the same in terms of what that investment in St. Thomas means for his community.

[Peter Fragiskatos, Liberal, London North Centre, ON]

Mr. Speaker, I appreciate the question from someone who understands his community very well. He served as a city councillor and knows what it means when an investment comes to a community and the spinoff effects that it can have. He mentioned the Dofasco case.

I expect nothing but good things to come from this investment for local businesses in London that already have relied on automotive, as we see transitions from the current situation in terms of the combustion engine toward electric vehicles. Certainly, there will be new businesses that sprout up and existing ones that are able to tap in and be part of that supply chain, not to mention, of course, the workers, who will be able to work at Volkswagen. So many and London will benefit directly.

I am so excited for what is ahead.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Mr. Speaker, before budget 2023 was presented, our Conservative leader made three demands of it: one, that it end the war on work and lower taxes for workers; two, that it end inflationary deficits that are driving up the cost of goods; and three, that it remove gatekeepers to increase the building of homes in Canada. Sadly, none of these three Conservative demands were met, and for that reason I will not be supporting Bill C-47, the budget implementation act, 2023.

Simply put, all the budget will do is drive up the cost of the goods and interest and taxes paid by the fine residents in my riding, in the communities of Fort Erie, Niagara Falls and Niagara-on-the-Lake. Canadians are struggling because of this incompetent Liberal government, which has become addicted to overspending.

Here are just a few quick statistics that will surprise those Canadians watching. Those who are watching should please make sure they are seated. I am not making this up.

After eight years, this Liberal Prime Minister has added more debt than all other prime ministers combined. Yes, that is since Confederation in 1867. Canada's federal debt for the 2023-24 fiscal year is projected to reach $1.22 trillion. If that is not jaw dropping, get this: That federal Liberal debt counts for nearly $81,000 per household in Canada. Budget 2023 simply provides no path to balancing Canada's budget projections.

The deficit for 2022-23 is up to $43 billion. That is only $6 billion less than what we will spend on health care this fiscal year. Even the government's own projections have changed since last November. In her fall economic statement, the Minister of Finance projected a $4.5-billion surplus for 2027-28, yet here we are six months later and this surplus has been completely erased. In its place, budget 2023 now projects a $14-billion deficit in 2027-28, with interest payments on our national debt reaching $50 billion.

These depressing figures make it hard to be hopeful for future generations of Canadians. They also highlight the degree of fiscal mismanagement by this Liberal Prime Minister and his government. For millions of Canadians, it is even more challenging to live through.

Many residents and families in my communities, especially seniors and new Canadians, are struggling mightily with the high cost of inflation on their shelter and groceries, and even higher federal taxes are being implemented. In fact, “Canada's Food Price Report 2023” predicts that a family of four will spend up to $1,065 more on food this year, which is $598 more than the $467 from the so-called grocery rebate they will receive. Members should not be fooled by the Liberal spin. This overhyped rebate is not actually a relief measure at all. It simply gives money back to Canadians that this government already clawed from them through its big tax hikes. This rebate will do nothing to solve the cost of living crisis.

On top of that, the Parliamentary Budget Officer has recently shown that the carbon tax will cost the average family between $402 and $847 in 2023, even after the rebates. Further, it is only going to get worse in the near future. By 2030, carbon taxes could add 50¢ per litre to the price of gasoline.

In addition to these fiscal troubles, I am also concerned about what is missing in budget 2023.

There is zero mention of the critically important wine sector support program. This program was designed by Wine Growers Canada and adopted by Agriculture Canada as a trade legal program to protect Canadian wineries from having to pay the expensive excise tax. This program expired last summer, and Canadian wineries, including those in the Niagara region and in my communities of Niagara-on-the-Lake and Niagara Falls, badly need this program, or they risk potential job losses and closures.

In last year's budget, the government showed that it would be receiving $390 million by now taxing our wine sector. Where are those funds going? Our grape growers and wineries deserve answers from the government which created this mess through its introduction of the escalator clause on alcohol in 2017. Do not even get me going on the negative impact the escalator clause is causing to our sector.

However, this Liberal sleight of hand does not just apply to Canadian grapes and wine. It also touches upon the 2,800 tourism-related businesses and the 40,000 workers in the tourism sector in Niagara. In 2019, Niagara welcomed more than 13 million visitors and generated $2.4 billion in receipts as Canada's top leisure tourism destination.

As many members of this place will know, this week is National Tourism Week and the theme is “Canada: Powered by Tourism”. If members were to examine this budget and the government's commitment to tourism, they would be hard pressed to see its recognition for a sector that at one time reached $105 billion nationwide and was responsible for one in every 11 jobs created in Canada.

Throughout National Tourism Week, I have been meeting with many tourism stakeholders and receiving their feedback and reaction to budget 2023. In short, the Indigenous Tourism Association of Canada is disappointed in the 2023 budget and the empty promises, the lack of funding and the money it has cost to build the federal growth strategy. In fact, it has told me its members are still waiting for the millions of dollars in funding that was promised to them and identified by the government in last year's budget.

I have also met with representatives of the Tourism Industry Association of Canada, who expressed their concerns that despite improvements over the last 12 months, tourism businesses continue to struggle financially and are carrying significant debt loads. There is also an increasing sense of impatience and concern from the industry by the lack of commitment from the government to provide a firm timeline to introduce the highly anticipated, long-awaited and overdue federal tourism growth strategy.

I also want to note two concerns that I have flagged after reading budget 2023.

My first concern is on the commitment of spending $50 million on Destination Canada over three years, starting in 2023-24, and yet there is no detail on how these funds are to be allocated. If members were to look at the government estimates, they would see the Liberals have committed $111 million to Destination Canada this fiscal year. Are any of the $50 million pledged by the government included in that budget? If so, it is a bit disappointing, considering that $156 million was spent last year to attract major international conventions, conferences and events to Canada.

As well, what of the $108 million committed to the regional development agencies over three years starting in 2023-24 to support communities, small businesses and non-profit organizations in developing local tourism projects and events? Again the Liberals' sleight of hand is at work here. When we look at the line items provided in the budget for the three years, we see that the government only shows a total of $93 million being allocated. Where is the remaining $15 million? Is this money not being spent from last year's budget from the regional relief fund, or are some of those funds dedicated to indigenous tourism from last year now actually going to be counted for this year?

It is not good enough for the Minister of Tourism to tell the people of Canada's travel and tourism industry that they should simply be happy they were included in this year's budget. The bar needs to be set higher, especially when it comes to discussing an industry that was disadvantaged for nearly three years by the COVID-19 pandemic and the federal restrictions such as ArriveCAN that were implemented.

After eight years of this Liberal Prime Minister, the future of Canada's travel and tourism industry is at risk because of higher costs and taxes imposed by this reckless and expensive Liberal government. It is for those reasons and more that I will be voting against this legislation.

[Chad Collins, Liberal, Hamilton East—Stoney Creek, ON]

Mr. Speaker, I was very impressed with the recent announcement that we made for funding for the Great Lakes action plan. It was $420 million to assist with cleaning up the Great Lakes. As a member whose riding borders the shoreline of Lake Ontario, I know how important that investment is in terms of cleaning the environment and cleaning the lakes. That is in large part due to my friend and colleague from Niagara Centre who worked very hard over many years to make that investment happen.

I certainly took into consideration some of the constructive criticism the member provided as it relates to the budget, but can I ask his opinion in terms of what would be considered a historic announcement? He is from the vicinity there, the region of Niagara. I know his constituents enjoy Lake Ontario and probably some of the other Great Lakes. What are his thoughts on that investment? Could he support something like that?

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Mr. Speaker, I appreciate my hon. colleague's questions about the work that the colleague from Niagara Centre has been doing. However, the member for Niagara Centre has been working on that for eight years. Only now, and after pressure from the United States that it was going to stop funding certain aspects of that money that is included in that $420 million, has this government finally realized it needed to act. In fact, the government and its bureaucrats are still fighting with regard to the Great Lakes Fishery Commission in effectively transferring it over from the Department of Fisheries to the Department of Global Affairs. Why is it taking two years for that to happen? That needs to be rectified, and rectified now.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, the Liberals believe the budget will balance itself, and the Conservatives believe they can pump out so much oil into the atmosphere that the climate will balance itself.

I want to ask my hon. colleague about the huge subsidies going into the TMX pipeline.

Joe Biden has said that within nine years, 67% of all vehicles in the United States will be electric. That is going to have a huge impact on creating stranded assets. TMX costs over $30 billion right now, but here is the kicker: In order to be viable, the money gets paid back in toll charges for each barrel of oil shipped, and the Liberals have limited the cost to any oil company to 22% of the cost. That means for every barrel of oil shipped, 78% of the cost will be subsidized by the Canadian taxpayer.

Given the massive profits big oil is making, why are Canadians being told they will pay 78% of every barrel of raw bitumen shipped through that pipeline?