Bill C-59

Fall Economic Statement Implementation Act, 2023

An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and 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) limiting the deductibility of net interest and financing expenses by certain corporations and trusts, consistent with certain Organisation for Economic Co-operation and Development and the Group of Twenty Base Erosion and Profit Shifting project recommendations;
(b) implementing hybrid mismatch rules consistent with the Organisation for Economic Co-operation and Development and the Group of Twenty Base Erosion and Profit Shifting project recommendations regarding cross-border tax avoidance structures that exploit differences in the income tax laws of two or more countries to produce “deduction/non-inclusion mismatches”;
(c) allowing expenditures incurred in the exploration and development of all lithium to qualify as Canadian exploration expenses and Canadian development expenses;
(d) ensuring that only genuine intergenerational business transfers are excluded from the anti-surplus stripping rule in section 84.1 of the Income Tax Act ;
(e) denying the dividend received deduction for dividends received by Canadian financial institutions on certain shares that are held as mark-to-market property;
(f) increasing the rate of the rural supplement for Climate Action Incentive payments (CAIP) from 10% to 20% for the 2023 and subsequent taxation years as well as referencing the 2016 census data for the purposes of the CAIP rural supplement eligibility for the 2023 and 2024 taxation years;
(g) providing a refundable investment tax credit to qualifying businesses for eligible carbon capture, utilization and storage equipment;
(h) providing a refundable investment tax credit to qualifying businesses for eligible clean technology equipment;
(i) introducing, under certain circumstances, labour requirements in relation to the new refundable investment tax credits for eligible carbon capture, utilization and storage equipment as well as eligible clean technology equipment;
(j) removing the requirement that credit unions derive no more than 10% of their revenue from sources other than certain specified sources;
(k) permitting a qualifying family member to acquire rights as successor of a holder of a Registered Disability Savings Plan following the death of that plan’s last remaining holder who was also a qualifying family member;
(l) implementing consequential changes of a technical nature to facilitate the operation of the existing rules for First Home Savings Accounts;
(m) introducing a tax of 2% on the net value of equity repurchases by certain Canadian corporations, trusts and partnerships whose equity is listed on a designated stock exchange;
(n) exempting certain fees from the refundable tax applicable to contributions under retirement compensation arrangements;
(o) introducing a technical amendment to the provision that authorizes the sharing of taxpayer information for the purposes of the Canadian Dental Care Plan;
(p) implementing a number of amendments to the general anti-avoidance rule (GAAR) as well as introducing a new penalty applicable to transactions subject to the GAAR and extending the normal reassessment period for the GAAR by three years in certain circumstances;
(q) facilitating the creation of employee ownership trusts;
(r) introducing specific anti-avoidance rules in relation to corporations referred to as substantive CCPCs; and
(s) extending the phase-out by three years, and expanding the eligible activities, in relation to the reduced tax rates for certain zero-emission technology manufacturers.
It also makes related and consequential amendments to the Excise Tax Act and the Excise Act, 2001 .
Part 2 enacts the Digital Services Tax Act and its regulations. That Act provides for the implementation of an annual tax of 3% on certain types of digital services revenue earned by businesses that meet certain revenue thresholds. It sets out rules for the purposes of establishing liability for the tax and also sets out applicable reporting and filing requirements. To promote compliance with its provisions, that Act includes modern administration and enforcement provisions generally aligned with those found in other taxation statutes. Finally, this Part also makes related and consequential amendments to other texts to ensure proper implementation of the tax and cohesive and efficient administration by the Canada Revenue Agency.
Part 3 implements certain Goods and Services Tax/Harmonized Sales Tax (GST/HST) measures by
(a) ensuring that an interest in a corporation that does not have its capital divided into shares is treated as a financial instrument for GST/HST purposes;
(b) ensuring that interest and dividend income from a closely related partnership is not included in the determination of whether a person is a de minimis financial institution for GST/HST purposes;
(c) ensuring that an election related to supplies made within a closely related group of persons that includes a financial institution may not be revoked on a retroactive basis without the permission of the Minister of National Revenue;
(d) making technical amendments to an election that allows electing members of a closely related group to treat certain supplies made between them as having been made for nil consideration;
(e) ensuring that certain supplies between the members of a closely related group are not inadvertently taxed under the imported taxable supply rules that apply to financial institutions;
(f) raising the income threshold for the requirement to file an information return by certain financial institutions;
(g) allowing up to seven years to assess the net tax adjustments owing by certain financial institutions in respect of the imported taxable supply rules;
(h) expanding the GST/HST exemption for services rendered to individuals by certain health care practitioners to include professional services rendered by psychotherapists and counselling therapists;
(i) providing relief in relation to the GST/HST treatment of payment card clearing services;
(j) allowing the joint venture election to be made in respect of the operation of a pipeline, rail terminal or truck terminal that is used for the transportation of oil, natural gas or related products;
(k) raising the input tax credit (ITC) documentation thresholds from $30 to $100 and from $150 to $500 and allowing billing agents to be treated as intermediaries for the purposes of the ITC information rules; and
(l) extending the 100% GST rebate in respect of new purpose-built rental housing to certain cooperative housing corporations.
It also implements an excise tax measure by creating a joint election mechanism to specify who is eligible to claim a rebate of excise tax for goods purchased by provinces for their own use.
Part 4 implements certain excise measures by
(a) allowing vaping product licensees to import packaged vaping products for stamping by the licensee and entry into the Canadian duty-paid market as of January 1, 2024;
(b) permitting all cannabis licensees to elect to remit excise duties on a quarterly rather than a monthly basis, starting from the quarter that began on April 1, 2023;
(c) amending the marking requirements for vaping products to ensure that the volume of the vaping substance is marked on the package;
(d) requiring that a person importing vaping products must be at least 18 years old; and
(e) introducing administrative penalties for certain infractions related to the vaping taxation framework.
Part 5 enacts and amends several Acts in order to implement various measures.
Subdivision A of Division 1 of Part 5 amends Subdivision A of Division 16 of Part 6 of the Budget Implementation Act, 2018, No. 1 to clarify the scope of certain non-financial activities in which federal ‚financial institutions may engage and to remove certain discrepancies between the English and French versions of that Act.
Subdivision B of Division 1 of Part 5 amends the Trust and Loan Companies Act , the Bank Act and the Insurance Companies Act to, among other things, permit federal financial institutions governed by those Acts to hold certain meetings by virtual means without having to obtain a court order and to permit voting during those meetings by virtual means.
Division 2 of Part 5 amends the Canada Labour Code to, among other things, provide a leave of absence of three days in the event of a pregnancy loss and modify certain provisions related to bereavement leave.
Division 3 of Part 5 enacts the Canada Water Agency Act . That Act establishes the Canada Water Agency, whose role is to assist the Minister of the Environment in exercising or performing that Minister’s powers, duties and functions in relation to fresh water. The Division also makes consequential amendments to other Acts.
Division 4 of Part 5 amends the Tobacco and Vaping Products Act to, among other things,
(a) authorize the making of regulations respecting fees or charges to be paid by tobacco and vaping product manufacturers for the purpose of recovering the costs incurred by His Majesty in right of Canada in relation to the carrying out of the purpose of that Act;
(b) provide for related administration and enforcement measures; and
(c) require information relating to the fees or charges to be made available to the public.
Division 5 of Part 5 amends the Canadian Payments Act to, among other things, provide that additional persons are entitled to be members of the Canadian Payments Association and clarify the composition of that Association’s Stakeholder Advisory Council.
Division 6 of Part 5 amends the Competition Act to, among other things,
(a) modernize the merger review regime, including by modifying certain notification rules, clarifying that Act’s application to labour markets, allowing the Competition Tribunal to consider the effect of changes in market share and the likelihood of coordination between competitors following a merger, extending the limitation period for mergers that were not the subject of a notification to the Commissioner of Competition and placing a temporary restraint on the completion of certain mergers until the Tribunal has disposed of any application for an interim order;
(b) improve the effectiveness of the provisions that address anti-competitive conduct, including by allowing the Commissioner to review the effects of past agreements and arrangements, ensuring that an order related to a refusal to deal may address a refusal to supply a means of diagnosis or repair and ensuring that representations of a product’s benefits for protecting or restoring the environment must be supported by adequate and proper tests and that representations of a business or business activity for protecting or restoring the environment must be supported by adequate and proper substantiation;
(c) strengthen the enforcement framework, including by creating new remedial orders, such as administrative monetary penalties, with respect to those collaborations that harm competition, by creating a civilly enforceable procedure to address non-compliance with certain provisions of that Act and by broadening the classes of persons who may bring private cases before the Tribunal and providing for the availability of monetary payments as a remedy in those cases; and
(d) provide for new procedures, such as the certification of agreements or arrangements related to protecting the environment and a remedial process for reprisal actions.
The Division also amends the Competition Tribunal Act to prevent the Competition Tribunal from awarding costs against His Majesty in right of Canada, except in specified circumstances.
Finally, the Division makes a consequential amendment to one other Act.
Division 7 of Part 5 amends the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act to exclude from their application prescribed public post-secondary educational institutions.
Subdivision A of Division 8 of Part 5 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things,
(a) provide that, if a person or entity referred to in section 5 of that Act has reasonable grounds to suspect possible sanctions evasion, the relevant information is reported to the Financial Transactions and Reports Analysis Centre of Canada;
(b) add reporting requirements for persons and entities providing certain services in respect of private automatic banking machines;
(c) require declarations respecting money laundering, the financing of terrorist activities and sanctions evasion to be made in relation to the importation and exportation of goods; and
(d) authorize the Financial Transactions and Reports Analysis Centre of Canada to disclose designated information to the Department of the Environment and the Department of Fisheries and Oceans, subject to certain conditions.
It also amends the Budget Implementation Act, 2023, No. 1 in relation to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and makes consequential amendments to other Acts and a regulation.
Subdivision B of Division 8 of Part 5 amends the Criminal Code to, among other things,
(a) in certain circumstances, provide that a court may infer the knowledge or belief or recklessness required in relation to the offence of laundering proceeds of crime and specify that it is not necessary for the prosecutor to prove that the accused knew, believed they knew or was reckless as to the specific nature of the designated offence;
(b) remove, in the context of the special warrants and restraint order in relation to proceeds of crime, the requirement for the Attorney General to give an undertaking, as well as permit a judge to attach conditions to a special warrant for search and seizure of property that is proceeds of crime; and
(c) modify certain provisions relating to the production order for financial data to include elements specific to accounts associated with digital assets.
It also makes consequential amendments to the Seized Property Management Act and the Forfeited Property Sharing Regulations .
Division 9 of Part 5 retroactively amends section 42 of the Federal-Provincial Fiscal Arrangements Act to specify the payments about which information must be published on a Government of Canada website, as well as the information that must be published.
Division 10 of Part 5 amends the Public Sector Pension Investment Board Act to increase the number of directors in the Public Sector Pension Investment Board, as well as to provide for consultation with the portion of the National Joint Council of the Public Service of Canada that represents employees when certain candidates are included on the list for proposed appointment as directors.
Division 11 of Part 5 enacts the Department of Housing, Infrastructure and Communities Act , which establishes the Department of Housing, Infrastructure and Communities, confers on the Minister of Infrastructure and Communities various responsibilities relating to public infrastructure and confers on the Minister of Housing various responsibilities relating to housing and the reduction and prevention of homelessness. The Division also makes consequential amendments to other Acts and repeals the Canada Strategic Infrastructure Fund Act .
Division 12 of Part 5 amends the Employment Insurance Act to, among other things, create a benefit of 15 weeks for claimants who are carrying out responsibilities related to
(a) the placement with the claimant of one or more children for the purpose of adoption; or
(b) the arrival of one or more new-born children of the claimant into the claimant’s care, in the case where the person who will be giving or gave birth to the child or children is not, or is not intended to be, a parent of the child or children.
The Division also amends the Canada Labour Code to create a leave of absence of up to 16 weeks for an employee to carry out such responsibilities.

[Don Davies, NDP, Vancouver Kingsway, BC]

Well, I'm glad there's an acknowledgement that they're wasting time.

Of course we can't do that, because there are amendments before the committee on Bill C-59. I think there are about 15 of them, and some of them are extremely important. A lot of them come from the witnesses themselves. I think all parties in the House have actually put forth amendments to Bill C-59. We can't actually pass Bill C-59 right now without dealing with the amendments. However, I will hold the Conservatives to their word, that as soon as this motion before us is dispensed with, we can move swiftly through Bill C-59 so that we can actually pass this legislation, get it back in the House and give Canadians and businesses the economic relief that they need and deserve.

It's funny; I always hear that the number one thing the business community needs is certainty. They can deal with all sorts of different policies, but what they really want is certainty. Here the Conservatives are, holding up Bill C-59, when business after business came to this committee and said they wanted these rules in place so they can plan their economic activity. Businesses are waiting to invest in environmental technology and in all sorts of investment decisions based on the provisions in this bill. The Conservatives are holding this up, leading to great uncertainty among businesses.

You know, in business, especially in this global world, time is money and things are moving quickly. While Canadian businesses have to hold off, other countries and businesses do not. In terms of what the Conservatives are doing here, they think they're being kind of cute in this room. That would be one thing, and that would be tolerable, but what they're really doing is hampering Canadian businesses and harming our interests on a global scale.

I move to adjourn the debate so that we can get to Bill C-59.

[Jasraj Singh Hallan, Conservative, Calgary Forest Lawn, AB]

Thank you, Chair.

I just wanted to make that clarification. If Ms. Dzerowicz thinks the carbon tax doesn't impact the trucker who's shipping the material to build those houses, and consequently the farmers who are growing the food, and the trucker who's shipping the food, and the people who are retailing the food, then I think it just goes to show how out of touch and out of reality the Liberal government is. It just proves how out of touch they are about this carbon tax scam. That's what we're concerned about—that Mark Carney is just as out of touch and doesn't understand the pain of Canadians.

The carbon tax has a huge impact on people's lives, whether it's housing or groceries. It's also a factor in why people are going into food banks. It's now two million, in fact, and a million more this year. This fact flies over Liberals' heads, because they're so ideologically obsessed with their woke, extremist view on this carbon tax scam.

In closing, I just want to throw it out there that if the Liberals and the NDP want to pass Bill C-59, we're willing to do it right now. We could get it done with a vote right now. If this coalition agrees to pass our motion right now, as amended by Mr. Lawrence, we can get both things cleared up right now, within the next minute. That's all we ask for. Let's get both things passed right now. We don't have to waste any more time.

Thank you.

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

Thank you, Mr. Chair.

Good morning, everyone. It's difficult for me to speak after Mr. Baker's very strong and heartfelt speech.

I first want to greet Mr. Turnbull and congratulate him on his new position, which brings him to join our committee.

As several colleagues have said, I hope we can get back to clause-by-clause consideration of Bill C‑59. I'm thinking in particular of all the senior public servants who are here today. We shouldn't hold them up too long unnecessarily.

I have great respect for Mr. Carney, who was Governor of the Bank of Canada and then Governor of the Bank of England. I always wish we could hear from him in committee, so I support the proposal to invite him to testify.

On the other hand, I'd like to say to my NDP colleague that he'd have my agreement if he ever suggested that the committee invite Jim Stanford. He's been here a few times too. It's always interesting to hear him talk about all the economic issues.

So I'm in favour of the motion for the reason I've just mentioned, not for the reasons raised by the Conservatives. However, I will be against the amendment, because I don't think it's useful at this time to send a subpoena to Mr. Carney to force him to come and testify for four hours.

That's my position.

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

Thank you.

That amendment has been moved. Am I correct?

Terrific. Now I'll be speaking about the amendment, if that's correct.

With respect to Bill C-59, I want to clarify that there is no conspiracy afoot to delay this legislation. The fall economic statement was introduced almost six months ago. It's actually unprecedented. It's running parallel to the budget. That's not because of Conservatives. That's because of the Liberal Party's mismanagement of their calendar. Those are just the facts.

As part of the discussion on Bill C-59, yes, we think it would be informative and illustrative to have Mr. Carney appear. He is the former governor of the Bank of Canada. He's the former governor of the Bank of England. We believe he's not just a random Liberal and not just any private citizen. I think it's been well reported out there that he will be the next leader of the Liberal Party. His input on Bill C-59 is not only important but also critical.

We followed the legislative process. We invited him as part of the process. He refused to appear. It is not the first resource of Conservatives or, I would think, of any MP to summon someone. We give them, first, a chance to respond. He failed to respond. Now we're bringing in the next part. Bill C-59 is, of course, about ready to conclude. We have the budget going forward, so it is not out of order. In fact, it's completely within order. We followed the process. We put him on the witness list. He refused to attend. Now we're coming back.

We weren't going to summon him, but the NDP seem to think it's required. We will agree somewhat reluctantly with their request to summon Mr. Carney, because we think it's a bit of overkill. We would expect and hope that all members would utilize, in a common-sense manner, the powers that are bestowed on us to get important witness testimony from Mr. Carney.

Thank you very much.

[Don Davies, NDP, Vancouver Kingsway, BC]

Thank you, Mr. Chair.

I don't intend to speak for long, but since I and my party were referenced in the Conservatives' comments, I want to set the record straight.

First of all, I endorse all the comments of Ms. Dzerowicz. I've only been on this committee two weeks, and if there is one thing I've heard consistently through 20 hours of finance committee hearings on the fall economic statement in the last two weeks alone, it's that there is unanimity that they want this bill passed as soon as possible.

This is clearly a delay tactic by the Conservatives. Anybody watching this could tell easily, because they had three Conservatives speaking to a simple motion to call a witness. That's not necessary if they truly are sincere about just calling this witness.

The repeated references to Mr. Carney's putative political ambitions, I think, also starkly reveal where the Conservatives are really coming from on this. They're being partisan, and they're trying to politicize this committee for their own electoral purposes, which I find a misuse of this committee's time.

I've never heard the name Mark Carney and central planning ever mentioned in the same breath. He doesn't strike me as a central-planning type of person, but maybe I have a different view of central planning than the Conservatives do.

I've had multiple conversations with my colleagues on the other side about calling Mr. Carney. Mr. Carney does have a storied history. He was Governor of the Bank of Canada as well as Governor of the Bank of England, but right now he's a private citizen. He made some remarks as a private citizen. If this committee is going to function so that any one of the 12 members of this committee at any time can call to this committee a citizen of this country who says something interesting, we will grind this committee to a halt. I could list 12 people who have said interesting things about monetary policy and fiscal policy in the last week. I was talking to Jim Stanford a few days ago. I'd like to call Jim Stanford to the committee by May 9 to hear what he has to say. If we do that....

The Conservatives are saying yes. We'll see how they react, if and when they are government again, when important things like budget implementation bills—upon which 40 million Canadians depend and for which businesses in this country are yearning—are held up while we have a debating salon in the finance committee as opposed to dealing in an orderly fashion with the business that should come before the finance committee, which is the fall economic statement.

For Canadians watching, right now on the docket of this committee we have the fall economic statement, Bill C-59, which we're trying to pass today. We have an upcoming budget. We have a housing study, which is currently under way and unfinished. These will be delayed by these kinds of political shenanigans.

I will tell you that my constituents are much more interested in getting affordable housing than they are in hearing about Mr. Carney's potential political ambitions.

We have an inflation study. I think a lot of Canadians in the last two years have really struggled with the high cost of food. The Conservatives claim to care about it. We have a study before this committee, and they want to delay that study to engage in a partisan attack on someone they view to be a potential Liberal leader.

What's funny about this is how brazen and stark the Conservatives are about their ambitions. I thought they would at least have enough respect for this committee to try to hide it, but they haven't. I mean, they lay it right out there. They want to call Mr. Carney because he's a possible Liberal leader. That's not a proper use of the finance committee.

By the way, as I've communicated to the Conservatives, absolutely, Mr. Carney could be invited to this committee, and I'd be interested in hearing what he has to say. Do it in the proper way. Do it in the context of a study.

For any Canadians watching this, when there is a study here, every party is entitled to nominate the witnesses they want to hear. They don't need a motion passed for that. I've already indicated to the Conservatives that we should have a couple of days on the inflation study in the next 60 days. I'd support their calling Mr. Carney as a witness on inflation if they think he has something interesting to say. They know that, yet they come in public here and move a motion in order to politicize something that is simply a waste of time.

If Mr. Carney has been invited before and he didn't come, as the Conservatives have said, issue a summons. Move a motion to issue a summons. That's a tool they have. They haven't done that.

For all of those reasons, I'm going to vote against this motion.

I want to be clear on the record: I look forward to Mr. Carney's coming to this committee at the appropriate time in the appropriate study, which can happen in the next two months. I'm not prepared to hold up the important work of this committee to get Canadians and Canadian businesses the important relief they need just so the Conservatives can use this committee as a political attack tool as opposed to an important parliamentary committee that is here to move forward important legislation like the budget.

Thank you.

[Julie Dzerowicz, Liberal, Davenport, ON]

Thank you so much, Mr. Chair.

I want to concur and agree wholeheartedly with my colleague, Mr. Turnbull. I am glad he's here with us today. I too am very disappointed that the Conservatives continue to try to delay the passing of Bill C-59, the fall economic statement, by proposing this time-wasting motion. We have heard from stakeholder after stakeholder after stakeholder. They have asked to move as quickly as possible to get going on passing this legislation, particularly on things like the clean economy investment tax credits. They're not able to do the work until we actually pass this legislation.

I will tell you that in proposing this motion today, the federal Conservatives are disingenuous. It is not the job of the finance committee to interview possible future politicians. They have to stop using the finance committee for their fishing expeditions and honour our important role to review, improve and pass critical legislation that comes to committee, which is what we're doing today.

Mr. Chair, I would ask our colleagues to stop the games and stop the gimmicks that slow down our important work. Let's get back to clause-by-clause. Canadians are looking for serious leadership from their government—not games, not slogans, not gimmicks.

Thank you.

[Ryan Turnbull, Liberal, Whitby, ON]

Thank you, Mr. Chair.

It's great to be here with all the committee members. This is my first finance committee meeting.

I just want to make a few points about this. It sure seems to me like Bill C-59 and the amendments to the Competition Act, the investment tax credit regime that I know industry has been asking for, and the many other components of this bill make up the reason that we all came here today. It was to do clause-by-clause analysis of a very important piece of legislation. I note that there have been about 20 hours of witness testimony. It's actually been many months to get to this point.

It's just interesting to me that the Conservatives bring this motion now, at this time, right before we're moving into clause-by-clause analysis. It seems to me that this is a delay tactic. We've seen these many times before. Conservatives use obstructionist tactics to delay committee proceedings, to delay House proceedings and to delay such important pieces of legislation as the sustainable jobs act and the amendments to the Atlantic accord. There are many, many examples of Conservatives obstructing our parliamentary proceedings.

Stakeholders in industry want us to pass Bill C-59. They are calling for the doubling of the rural top-up and the amendments to the Competition Act. There is a lot of will behind the passage of Bill C-59.

If the Conservatives really want to hear about monetary policy, the Bank of Canada governor is scheduled to appear this Thursday. Tiff Macklem, as you know, would be probably the most appropriate witness to answer your questions about monetary policy. I think the Conservatives have an opportunity to do that. This is obviously a political play and tactic to get clips and clicks. Let's move on here and move back into clause-by-clause.

[The Chair, Liberal, Peter Fonseca]

I call this meeting to order.

Members, witnesses, it's good to see everybody here. I hope you had a fruitful constituency week this past week.

Welcome to meeting number 140 of the House of Commons Standing Committee on Finance.

Pursuant to the order of reference of Monday, March 18, 2024, and the motion adopted on Monday, December 11, 2023, the committee is meeting to discuss Bill C-59, an act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023.

Today's meeting is taking place in a hybrid format pursuant to Standing Order 15.1.

Before we begin, I'd like to remind all members and other meeting participants in the room of the following important preventative measures, which have changed.

To prevent disruptive and potentially harmful audio feedback incidents that can cause injuries, all in-person participants are reminded to keep their earpieces away from all microphones at all times.

As indicated in the communiqué from the Speaker to all members on Monday, April 29, the following measures have been taken to help prevent audio feedback incidents.

All earpieces have been replaced by a model that greatly reduces the probability of audio feedback. The new earpieces are black in colour, whereas the former earpieces were grey. Please only use the black approved earpiece.

By default, all unused earpieces will be unplugged at the start of a meeting.

When you are not using your earpiece, please place it face down in the middle of the sticker for this purpose, which you will find on the table as indicated.

Please consult the cards on the table for guidelines to prevent audio feedback incidents.

The room layout has been adjusted to increase the distance between microphones and reduce the chance of feedback from an ambient earpiece.

These measures are in place so that we can conduct our business without interruption and to protect the health and safety of all participants, including the interpreters.

Thank you all for your co-operation.

In accordance with the committee's routine motion concerning connection tests for witnesses, I inform the committee that all witnesses have completed the required connection tests in advance of the meeting.

Those are the witnesses here, members. There are many officials and witnesses who are outside, and they may not have had that testing done. If they are called upon, we will suspend so that we can make sure their recording devices and interpretation devices are working well.

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

Please wait until I recognize you by name before speaking. For members in the room, please raise your hand if you wish to speak. For members on Zoom, please use the “raise hand” function. The clerk and I will manage the speaking order as best we can. We appreciate your understanding in this regard. As a reminder, all comments should be addressed through the chair. Officials are at the meeting to answer technical questions on the bill.

Now we are moving to the annotated agenda.

Members, as we start clause-by-clause consideration, pursuant to Standing Order 75(1), consideration of clause 1, the short title, is postponed.

(Clause 1 allowed to stand)

There are no amendments to clauses 2 to 6, so I would seek unanimous consent to group those, members.

Financial Statement of Minister of Finance

[Ryan Williams, Conservative, Bay of Quinte, ON]

Madam Speaker, I am happy to come back to this debate.

I was debating the battle for the soul of Canada, a battle between, on one side, the left and NDP-Liberal socialism, with its spending problem approach, high crime rates, divided division, high taxation and an unproductive monopolistic economy and, on the other side, the vision for a common-sense Conservative economy, where government is leaner, taxes are lower, paycheques are better and competition thrives. Of course, we also talk about democracy. Democracy works when there is public trust and good fiscal stewardship. We are trying to make the lives of Canadians even better.

Canadians enjoyed a good life in the middle class nine years ago. Canadians, young and old, now see the truth after nine years. They see, now, a government that is, instead of working hard for the middle class and those looking to join it, shutting the door to the middle class and those very Canadians it promised help to nine years ago. To top it all off, we have a monopoly problem and more pain, where people are paying higher fees for airlines, groceries, banking and cell phones.

The government approved, mere months ago, the merger of RBC and HSBC, which was the number one bank buying the number seven bank. One can already see the costs of mergers and acquisitions to those Canadians and to all Canadians across Canada. The five-year variable for HSBC, before the merger, was 6.4%. Now, after the merger, just today, that variable rate is at 7.2% under RBC, meaning that, if those mortgage holders had a $500,000 mortgage, which is pretty low for Canada, they are now paying over $333 a month. The monopoly problem means that we have less competition, and it means that Canadians are paying higher rates.

When we look at open banking as a solution for our problem with banking, we do not get the legislation promised out of this budget. Just like a caterpillar, it says that it is coming soon.

The reality is that legislation on open banking would bring savings to Canadians. In the U.K., introducing open banking brought $400 per family, yet this legislation would just kick it down the road once again, six years after the government promised to introduce it. Another one, called real-time rail, which would bring modern payments and make payments faster between Canadians, has been delayed, deferred and postponed.

There have been no new announcements on grocery prices. The government says that it has done enough with Bill C-59. Of course, Canadians have the highest grocery prices in a whole generation and are buying less food.

We have false statements about halving phone bills. The Prime Minister said that he would halve phone bills. Canadians are paying more and specifically more for data, as Canadians consume more data, especially for doorbell cams, as they are seeing increases of auto theft and they have to monitor their cars. Canadians are using data. Companies, of course, are profiting from that.

Canadians, instead, are broke because capitalism without competition is not capitalism, where prices are freely negotiated. We do not have competition in this monopoly-centred Canada and, what is worse, the budget aims to tax those who stay.

Canadians in Canada are broke, but it does not have to be that way. The state has no money other than the money people earn themselves. If the state wants to spend more, it is only by borrowing from one's savings or taxing one more.

In contrast, Conservatives champion the principles of individual responsibility and limited government, greater revenues and growth. We would have a dollar-for-dollar rule. For every dollar we spend, we must find a dollar in savings, just like a family does.

As Canadians, we must have the conviction to embrace the principles of that conservatism, to reject the false promises of Liberal-NDP socialism and to defend the values of freedom, opportunity and prosperity.

We would fix the budget, build the homes and axe the tax, and we would make sure that we bring Canadians home a capitalist government that would bring home their paycheque and bring back the middle class.

[The Chair, Liberal, Peter Fonseca]

Thank you, MP Davies.

Thank you, Dr. Da Silva and Professor Lee. We really appreciate your remarks, your testimony and the many answers you gave to questions on Bill C-59 for our work.

We wish you a nice evening. We'll see you again at committee.

Thanks, everybody. We are adjourned.

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

Thank you for that.

Every microeconomics course teaches that barriers to entry determine the level of competition possible in a market.

Do you think the act as a whole should be revised in light of that? I see you nodding, so thank you.

Bill C‑59 also aims to prevent corporations and wealthy individuals from using tax avoidance, tax evasion and tax havens to pay less tax.

Do you have any comments on that?

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

Thank you, Mr. Chair.

Thank you to the witnesses for being here.

Mr. Lee, thank you for your presentation. I'm going to ask you some questions about Bill C‑59. In your presentation, you said that your comments were general and more macroeconomic in nature. However, some bills, such as Bill C‑59, amend the Competition Act.

What should regulations, laws and standards look like in a competitive economy, in your view? How should the act govern that?

[Julie Dzerowicz, Liberal, Davenport, ON]

Let's not lose that. That's very important. I think the reason it was done when I was younger was that it was the only thing the school system, the health care system, could afford, because it didn't cost a lot of money. We want to do that. Also, whatever I learned in grade school, I very much carried through in high school. I just want to say that as a reminder to us all.

Thank you for your leadership, by the way. I really appreciate all the work you have done.

My second question is for Mr. Lee.

Mr. Lee, you might be the guest most invited to the finance committee. I've been on this committee for almost four years now, and I think I've seen you for just about every single study.

We're here to talk about the fall economic statement, so I want to ask you a question on that. We have heard a number of industry guests who have come before us talk about the fall economic statement. They very much support the investment tax credit, and they have been very vocal in telling us to get going in approving the fall economic statement and Bill C-59.

Would you agree with them?

[Dr. Amrinderbir Singh, President, Canadian Association of Public Health Dentistry]

Thank you, Chair and committee.

Good afternoon, everyone. My name is Dr. Amrinderbir Singh. I'm the current president of the Canadian Association of Public Health Dentistry. I'm also an assistant professor and the director of inclusive community outreach at the College of Dentistry, University of Saskatchewan.

I am extremely honoured to be invited today to represent the Canadian Association of Public Health Dentistry, which I'll refer to as CAPHD, as a witness before the House of Commons Standing Committee on Finance in view of its study of Bill C-59. The CAPHD is the national voice for dental public health in Canada and exists to support members, government, institutions and agencies dedicated to improving oral health and assuring oral health equity for Canadians.

First of all, on behalf of CAPHD, I would like to applaud and acknowledge the tremendous efforts made by the federal government in the latest phase of the development of the Canadian dental care plan. This unprecedented initiative will enable many of our equity-deserving Canadians to access much-needed oral health care, potentially improving their overall health and well-being while decreasing the burden of oral disease in Canada.

The CAPHD promotes and advocates for equitable oral health care for all Canadians. We will continue working with the government, partner organizations and our membership to support the CDCP and advocate strongly for its uptake and utilization across Canada.

The CAPHD is closely following the phased rollout of the CDCP and eagerly awaits early reports regarding plan enrolment and utilization. Our association believes that it is critical for the CDCP to remain responsive to the evolving needs of Canadians. Continuous evaluation of the CDCP will be important for informing data-driven policy adjustments, and interdisciplinary collaborations will be vital for enhancing the CDCP's effectiveness. As the plan matures, the CAPHD looks forward to more emphasis on preventive services for caries and periodontal diseases. This includes upstream services that increase oral health literacy, such as oral health education and counselling and the encouragement of interventions addressing the microbiology of dental decay and gum disease.

To encourage more health care providers to support the plan and increase access to care for underserved Canadians, the CAPHD proposes alignment of the CDCP fees with the existing provincial fee guides in the future. We believe that harmonized compensation rates will encourage more providers to participate in the plan.

Additionally, the CAPHD would like clarification on how health care providers can coordinate benefits for individuals eligible under more than one public insurance plan, be it federal, provincial, territorial or municipal. This clarification is essential to streamline the processes for health care providers and ease the financial burden for eligible individuals, which aligns with the CAPHD's preference for minimizing out-of-pocket expenses for patients.

By addressing these key areas, the CAPHD aims to encourage greater provider participation in the plan and support a sustainable model of care. Success in these endeavours is contingent upon the active involvement of health care providers, equity-deserving communities and high-risk populations. The CAPHD commits to advocating for enrolment strategies that actively engage all crucial stakeholders and promote provider enrolment within its membership. These collaborative efforts may enhance the plan's reach and impact and support Canadians in accessing the oral health care they need.

However, I would like to take this opportunity to emphasize that access-to-care barriers are complex and multi-dimensional, especially for rural and remote communities and high-risk population groups. If I may, I will extend that to include inner-city areas. Hence, in future planning, we urge the government to consider investing more resources to address the access-to-care barriers.

Again, the CAPHD expresses profound gratitude for the recognition of oral health’s vital role in the overall well-being of all Canadians. The CDCP has the potential to contribute towards increasing our population health significantly in the forthcoming years. By prioritizing oral health, we anticipate a notable reduction in the overall burden of disease, thereby alleviating pressures on our health care system.

Thank you.

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

Thank you, Mr. Chair.

Hello to all my colleagues. I'm glad to be back with you.

Hello to all the witnesses as well, and thank you for being here.

My questions are for Mr. Kelly from the Canadian Federation of Independent Business, or CFIB.

My first question pertains to Bill C‑59, the massive budget implementation bill, not for this week's budget, but for last year's budget. That is what we are concerned with here today.

Does the CFIB have any comments on the changes the bill makes to the Competition Act? If so, what are they?