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

[Tako Van Popta, Conservative, Langley—Aldergrove, BC]

Madam Speaker, the hon. member and I might not agree on the importance of having this pipeline built, but we agree that the government has mismanaged it. It is inexplicable that costs have risen from $7 billion to $30 billion. The government should just get out of the way. It does not know how to run a business.

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Madam Speaker, it is always a pleasure and honour to rise in this House. Of course, today we are speaking about the budget implementation act, Bill C-47.

Before discussing the substance of this act and why I, and I believe most Canadians, must oppose it, I have to explain the broader economic context in which it falls. I will endeavour to explain the challenges that our country is facing. Those challenges are significant and numerous. From there, I will discuss why the BIA is flawed and why it should be defeated, and finally, I will discuss a new path, a better path, one that leads to prosperity.

I hope that with this speech, I will not only engage Conservatives but engage members and supporters of independent parties, of the Liberal Party, of the New Democratic Party, of the Green Party and of the Bloc Québécois, because Canada's problems are really quite serious. I am not exaggerating. We have significant challenges. Quite frankly, we are going to need everyone, Liberals, New Democrats, Green Party members and members of the Bloc Québécois, to pull together to fix this country.

It starts with acceptance. We have to face the facts. All is not well in our great country. In fact, it is far from it. Over the past eight years, we have seen a Liberal government that is perhaps not bereft of good intentions and in fact may well be full of good intentions. However, what it has failed to deliver is results for Canadians.

Announcements have been frequent. They have been grand. Many a fine word has come from the Prime Minister's mouth and from members of the Liberal Party. However, the reality is that Canada is in economic decline, and that is not just me saying that. It is world economists, the OECD, the World Bank, the IMF and economists from coast to coast. The failed leadership and policies of the Liberal government have risen to such a level that they have put its very competence in question.

Let us go through some of those issues and describe the picture.

Our country has been ravaged by the impacts of high inflation. Not all inflation is equal. Things like energy prices are sometimes beyond the control of a particular country, but there are key core elements that are basic and national in nature. One of them is food, which is a critical element, and we have seen 10 months of double-digit food inflation. That has translated into a real impact on Canadians. Quite frankly, it is shameful that 1.5 million Canadians have visited food banks, and it is a sign of a country that is unfortunately in economic decline.

The high price of houses has had a significant impact on Canadians. There are far too many 30-year-olds still in their parents' basements desperately dreaming of the day they can own a home. Mortgage payments have doubled to over $3,000 a month. Rent has increased to over $2,000 a month, doubling over the past eight years. What is even more sad than the 30-year-olds dreaming of moving out of the basement is that nine out of 10 young people have given up the dream of home ownership, which once again is a sign of the failed policies that are putting our country on a path of economic decline.

We have more structural problems that the government has exacerbated over the past eight years. We have among the lowest capital investment rates. In fact, the OECD predicts that over the next 20 years, we will be last with respect to capital investments out of the entire OECD. We also have low innovation scores, and our number of patents is below that of most of our peer countries.

Our productivity numbers are once again near the bottom of the OECD. The productivity of a nation, or, in other words, what a country makes in terms of goods or delivers in services, is the very engine that drives the economy. When productivity is not right, the economy cannot be right, and that puts the whole economy in decline.

We can print as much money as we want, and the government certainly printed enough during COVID and post-COVID, but ultimately it is about the production of goods and what dollars buy. We can have as many dollars as we want; it does not increase the prosperity of a nation. What increases the prosperity of a nation is the ability to produce goods more effectively and efficiently than its peer countries, and we are falling behind.

We have tremendous challenges when it comes to productivity. It is amazing to me that this can happen, because we have what I believe is the best workforce in the world here in Canada. We have great post-secondary education, and we have a highly educated, highly motivated, hard-working population. However, somehow the government is squandering that opportunity and having us produce lower and lower results. This is not the fault of the Canadian people; it is the fault of the Liberal government.

Our inability to produce not only affects us but affects our allies as well. We left our allies literally out in the cold this winter, even though we have the energy not only to make ourselves independent but to supply other countries. We force countries such as Germany, Poland and France to depend on dictator oil, on Vladimir Putin's natural gas, when we have the ability to export liquefied natural gas from our very own coast. Our allies were literally begging us for our resources, but we could not get out of our own way. Once again, the fault does not lie with the great Canadian people; it falls to the Liberal government and its failure to get out of the way of the great people of Canada.

There can be no doubt that we in Canada are facing perilous economic times, and the Liberal government is responsible for many of those challenges. One might expect this after eight years of failed policies and continued poor results. Once again, this is not me saying this and it is not the Conservatives saying it. It is the OECD saying that we are one of the lower-ranked countries among our peers with respect to productivity, with respect to innovation and with respect to capital investment, over and over again. The government is too boxed in by its own ideology to acknowledge the realities going on out there in the world.

Ultimately, the driver of an economy is not the government. The government does not create value. It can certainly share value, and there is an important role for government to do that. It can also protect value through the military and through the police. However, it does not create or generate value; that is for the private sector. However, when we burden the private sector with overtaxation and over-regulation, we limit and inhibit the ability of that engine to drive the type of prosperity we need.

This is not a case of multi-billionaires getting away. The Liberals have let enough of their multi-billionaires get away through the Panama papers. However, who are they taxing? Do members know that many Canadians who earn less than $50,000 a year pay a marginal tax rate of over 50%? That means for every dollar people who earn less than $50,000 earn, between clawbacks and income tax they will be paying back to the government 50¢. Do members think it might be a barrier to having someone work when they know they will only be able to keep 50¢ of every dollar? Let us keep in mind that rent is now $24,000 a year on average or more, maybe $30,000 a year, and that food prices have increased. Then the government thanks them very much for going to work, and they have an annual salary of $50,000. I do not think anyone in this place is going to call that rich, and they are paying over 50¢ per dollar.

The challenge is clear, and this budget is not even close to getting it done. However, I believe we can change things, that Canada has a tremendous opportunity and that together we can build a Canada where opportunity abounds, where freedom is ever-present, where achievement is celebrated and where prosperity and not poverty is the norm. Canadians want to leave these eight years of despair, of stigmatization and of division behind. They want to start a new chapter filled with unity, prosperity and achievement. That is why I must vote against this budget, and that is why the voters of Canada will decide to go in a different direction in the next election.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, I do not believe the member. I do not believe he can show me a T4 slip from any of his constituents that would show they have a gross income of $50,000 and $25,000 of it went to taxes. I am going to challenge the member to demonstrate that and prove that I am wrong.

Speaking of facts, can the member explain this to me. If he is so passionate about the middle class, why is it that when we brought in a tax reduction for Canada's middle class and put in a special tax hike on Canada's 1% wealthiest, the Conservative Party, the party he belongs to, voted against the middle-class tax break and voted against the special tax for Canada's wealthiest persons?

I anxiously await that T4 slip. I hope I get to see it sometime in the next 12 months.

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Madam Speaker, I am disappointed in that member. I would direct him to the C.D. Howe Institute. You can look at the reports, and they will show the numbers. Does the member know what the clawback is for the GIS? It is 50¢ on the dollar. That is just the GIS alone, sir. You are so far off, it is ridiculous—

[The Assistant Deputy Speaker, Carol Hughes]

I want to remind the hon. member he is to direct questions and comments through the Chair and not directly to the member.

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Madam Speaker, he is so far ridiculous. I will walk him over today, and I will show him my calculations on the Ernst and Young calculator that shows, with clawbacks and with the income tax, that many Canadians are paying over 50¢ on the dollar. The fact that he does not know that shows how out of touch the government is and why we need a new direction and a government that will make life easier for Canadians.

[Lori Idlout, NDP, Nunavut, NU]

Uqaqtittiji, I would like to know what the member would say to his constituents about all the benefits that all the different populations of people in his riding in Northumberland—Peterborough South are going to be getting. There is dental care, the GST rebate being doubled and the grocery rebate. What is it about these benefits, which are going to his constituents, that he is so against?

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Madam Speaker, the challenge is that those benefits do not come from air; they come from taxpayers, and my constituents are tired of paying the bills for the government. Not all that money comes back to Northumberland. There are sticky fingers here in Ottawa that keep a large portion of that money. That money is better to keep in the pockets. I believe that a Canadian can spend the money better on themselves than any bureaucrat in Ottawa.

[Arnold Viersen, Conservative, Peace River—Westlock, AB]

Madam Speaker, I just wanted to ask my hon. colleague about the carbon tax. He did not talk too much about it, but I know the carbon tax is a massive driver of inflation here in Canada, and I was just wondering if he has any thoughts on what we should do with the carbon tax.

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Madam Speaker, Tiff Macklem, in response to my question, wrote to the finance committee and said that half a percentage point of inflation was directly related to the carbon tax. That means that if we want to reduce inflation by 20% today, we can get rid of the carbon tax.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, I will not dispute it, but I deeply disagree with my friend from Northumberland—Peterborough South. I wanted to ask him a question on something I know we agree about, and that is the failure of the budget to invest in Via Rail. Can he comment on whether, particularly in his local area, enough is being done to get passenger rail back on track?

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Madam Speaker, it was an absolute pleasure to work with that member on the rail caucus. I think we are doing great work there. I can tell members that because of those last eight years, just listening to several experts from Transport Action Canada, the rail system with Via and otherwise is in a state of disrepair because of the government's inability to get anything done.

[Blaine Calkins, Conservative, Red Deer—Lacombe, AB]

Madam Speaker, I want to get up on my feet today and thank the fine people I represent in my riding of Red Deer—Lacombe in central Alberta. They are some of the hardest-working people we will ever find.

Red Deer, for those who may not know who are watching, is Alberta's third-largest city. It is in a tier of communities, after Edmonton and Calgary, which are, of course, cities I think everybody in this country has heard of. However, places like Red Deer, Lethbridge, Fort McMurray and Grand Prairie would be the next tier of cities that we have in Alberta. Red Deer is the epicentre of central Alberta with a quarter of a million people. The city services that community all the way from Maskwacis to Ponoka to the north; down to the Olds-Didsbury area in the south; to Stettler, in my friend from Crowfoot's riding to the east; and, of course, the Rocky Mountain House community that I used to represent to the west. That is colloquially known as central Alberta, with all the communities and people that are there.

I was on Facebook earlier today and I saw that the Viking pipeline and Viking Projects in central Alberta is closing its doors and there will be a liquidation sale early next month. Every time I see these things happen in my constituency, I think I age a little more, because I know these people. They are my friends and my neighbours. One of my dearest friends had a very successful oil field trucking company. He fought to hang on through the eight years of this Liberal Prime Minister, and through four years of Rachel Notley as the premier of Alberta. He hired numerous good people, paid taxes and grew our hometown. We live in Lacombe, and these are the stories that are all too common.

It is really a shame that even though Albertans seemingly are working harder than ever, and it seems that Albertans have never worked so hard, they have a feeling that they just cannot get ahead. That is because the dollars they earn, the jobs they have, the businesses that they try and keep afloat in the middle class, and those desperately trying to cling to it, simply do not have the purchasing power, and their dollars do not go as far as they did even though they might be working harder. Of course, I do not have to go too far back in history to give examples in my constituency where people doing the same job just a few years ago are getting paid substantially less for the same job today, because the profitability and the viability of industries, such as agriculture, oil and gas, manufacturing and technology, are simply not as valued by this current government as not only the previous Conservative government, but might I even say the previous Liberal government.

It seems like the only time that we face economic and political crises in Alberta in the context of Canada is when we have a Liberal government with a prime minister that holds a certain last name. Members would be surprised to know that as I go and talk to people in my riding, of course, they certainly miss the policies of the previous Conservative government, which rewarded hard work, innovation, those who took a risk and those who were willing to work hard to get ahead, but even the previous Chrétien-Martin government is remembered somewhat fondly in the context of the Kyoto protocol and everything else that was not necessarily good for the industries in Alberta.

I just wanted to give that context to those who might be watching at home today, because as hard as Albertans are working, as optimistic as we remain, as strong as the Alberta spirit is, it is still very difficult for many people in my constituency.

We hear the stories in this country, but there is simply nobody in my riding talking about this. The budget was tabled on March 28 and it was a two-day story. Nobody is talking about anything because people realize their lives are still just as difficult as they were before the budget. Little do they know that their lives could get more difficult.

I want to talk about our position. Contrary to what others are saying in this place, we made our decision. We had conditions. The leader of my party had conditions of three things to be met. We wanted to bring home powerful paycheques with lower tax and scrap the carbon tax so that hard work would pay off, and that is certainly something we can relate to in central Alberta. We wanted to bring in homes that people can afford by removing government gatekeepers to free up land and speed up building permits. We wanted to bring home lower prices by ending inflationary debt and deficits that drive up inflation and interest rates. It is because none of those things are happening in this budget that we are voting against it.

I want to talk about the carbon tax and the effect it has had, the anti-energy policies the current government has had in Alberta and the massive closures we have had. Some of my colleagues touched on this earlier.

When Stephen Harper became the Prime Minister of Canada in 2006, the year I came to this place after being elected, we virtually inherited nothing insofar as major energy projects from the government. Of course, it was involved in the Kyoto protocol and its discussions.

We left the government that is in place today a balanced budget after going through the recession of 2008-09. We left the government in a strong fiscal position with fiscal anchors and decreasing debt-to-GDP ratios that had gone down from the mid 20s to low 20s during that tenure.

We also left the legislative framework here, notwithstanding the fact that prime was going down. The Bloc Québécois and the notion of separatism in this country and alienation in parts of this country were at an all-time low. There was relative peace and political harmony in this country, notwithstanding all of the bluff and bluster from the other side. During that time, things were pretty darn good in Canada. People were generally fairly happy and we certainly were not talking about the myriad of scandals and problems that we are talking about today.

In 2015, the government inherited numerous pipeline projects. It inherited the northern gateway project. It inherited the energy east project. It inherited Keystone XL. It inherited the Kinder Morgan Trans Mountain expansion.

All of these projects were proposed and going through the regulatory process with private money. It was money from shareholders, money from investors and money from risk takers. They were creating jobs. They had partnerships with indigenous communities where those pipelines happened to go.

During my time on the NATO Parliamentary Association, I had frank conversations with members of Parliament from Europe who were keen to have a conversation with me and with our Canadian counterparts every time we went to Brussels, every time we went and had these conversations, because they wanted to have the option to remove their dependence on Russian energy.

They had an interesting policy because they understood that part of keeping peace was creating economic prosperity on both sides. They wanted to have that ability. The government inherited over 15 LNG export projects, but one of the first things it did, which is why we cannot balance a budget and we do not even try any more in this country, was it clamped down on the most profitable and prosperity-generating industries this country has. Our number one export industry was the oil and gas industry. That is what it did.

I look forward to answering some well-articulated questions on the absolute economic disaster the government has caused the people of central Alberta.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, the member cannot rewrite history. The facts speak for themselves.

He wants to talk about Stephen Harper. Stephen Harper inherited a multi-billion dollar surplus and even before the recession kicked in, he had already turned that into a multi-billion dollar deficit, from a surplus to a deficit.

The Conservatives had a multiple-billion dollar trade deficit which we have actually converted into a surplus. The member himself needs to recognize that his reality of the past is not necessarily accurate when we take a look at the facts. The facts clearly demonstrate that Stephen Harper's policies of constraint and cutbacks, including reducing national defence spending to less than 1% in one of his years, is something which one should not be overly fond of or proud of.

[Blaine Calkins, Conservative, Red Deer—Lacombe, AB]

Madam Speaker, I guess what my colleague is saying is that he is grateful for the fact that Stephen Harper signed so many trade agreements that we finally erased the Liberal trade deficits that we inherited from the previous administration in 2006. From that perspective, if he wants to say thanks, I will tell him he is welcome but he does not get to change the facts.

The first several years of the Harper administration, yes, we did inherit a surplus and then when Stephen Harper became the prime minister, the first couple of years, the first budgets that we had, we continued to actually pay down the debt because that was the responsible thing to do.

Then 2008 and 2009 came along. Liberals begged and demanded. I remember Rodger Cuzner screaming at the top of his lungs in this place demanding that the Conservative government spend more, do more, spend more, borrow more money. Now the member across the way is complaining that we gave them a yes for an answer at the time.

The heights of hypocrisy never cease to amaze me where Liberals are concerned.