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.

Fall Economic Statement Implementation Act, 2023

[Leah Gazan, NDP, Winnipeg Centre, MB]

Madam Speaker, I have such a good time working with the member on committee.

What I have heard from the Conservative leader is that he plans to cut the CPP. That would place seniors in greater poverty. My question is in regard to a guaranteed livable basic income, particularly for women. We know a lot of women work their whole lives in unpaid care work, and they are now becoming seniors living in destitute poverty. We know GIS rates are not keeping up.

Would my hon. colleague support a guaranteed livable income for seniors?

[Anna Roberts, Conservative, King—Vaughan, ON]

Madam Speaker, I have enjoyed working with my hon. colleague on committee.

What we need to do is revisit the tax structure in this country. Right now, the tax structure is not fair. If we could reduce taxes and ensure that there is more money left in the pockets of seniors and every individual, we would not even be having this discussion. Seniors have worked their whole lives; the member is correct about that. We need to provide them with the essential necessities of life.

I look forward to making sure that, when we form government, seniors will not be left behind.

The House resumed consideration of the motion that 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, be read the second time and referred to a committee, and of the amendment.

[Majid Jowhari, Liberal, Richmond Hill, ON]

Mr. Speaker, I will be sharing my time with the member for Charlottetown.

I am thankful for the opportunity and privilege of rising in the House to participate in today's debate on Bill C-59, the fall economic statement implementation act, 2023. The legislation would deliver key measures from the 2023 fall economic statement, as well as budget 2023, to help the middle class by stabilizing consumer prices and making housing more affordable by supporting the construction of homes that Canadians very much need.

Our approach to tackling the housing crisis is multi-faceted. On that note, the federal government is collaborating with the provincial and territorial governments across Canada to do a number of things, such as cutting red tape, speeding up permitting approvals, lifting zoning restrictions and, consequently, building more homes much faster. This collaborative effort has already yielded substantial results, as evidenced by the following. There is the construction of more than 71,000 new rental homes through the allocation of over $25 billion in low-cost financing via the rental construction financing initiative. This is an initiative on which I received a lot of calls in my constituency from the developer, who is very interested in participating in it.

We are targeting the construction of over 12,000 affordable homes for those with severe housing needs or those experiencing homelessness through the rapid housing initiative. There will be 12,000 more homes for those who are homeless and 71,000 new rental homes for those looking to rent. We are also providing housing providers with low- or no-cost options to build 4,500 new homes by utilizing over $200 million through the federal lands initiative by repurposing surplus federal lands and buildings. We are now getting involved by providing those surplus federal lands and allocating and working with partners to build homes. In addition, we are investing $6.7 billion in housing for first nations on reserve, as well as Inuit, Métis and first nations self-governing and modern treaty communities.

To maintain pace with our expanding communities, we recognize that rental housing supply must also increase. Builders need access to low-cost financing, which would enable the construction of more new rental units much faster. The federal government has already made significant strides in this direction, but, naturally, there is more to come.

The 2023 fall economic statement announced an additional $15 billion in new loan funding for the apartment construction loan program starting in 2025-26. This supports the construction of an additional 30,000 new units across Canada by bringing the total loan funding to over $40 billion. By 2031-32, this program will have contributed to the support of over 101,000 new apartments for people to live in.

Affordable and community housing also plays a critical role. We were talking about providing housing and rentals and now we are talking about providing affordable and community housing for the most vulnerable Canadians that they can call home. To build more affordable housing for the most vulnerable Canadians, an additional investment to support non-profit co-op and public housing providers has been announcement in the 2023 fall economic statement to build more than 7,000 new co-op homes.

To help build more homes faster, the 2023 fall economic statement also removes the goods and services tax from new rental home construction for co-operative housing corporations providing long-term accommodations, as well as apartment buildings, student housing and seniors' residences. This move, alongside the formal establishment of the Department of Housing, Infrastructure and Communities, underscores our commitment to support the construction of homes across Canada.

I am particularly proud of the recent initiative in my riding of Richmond Hill. On Monday, November 27, I joined my hon. colleague, the Minister of Housing, Infrastructure and Communities; my neighbour, the member of Parliament for Aurora—Oak Ridges—Richmond Hill; and the mayor of Richmond Hill, His Worship Mayor David West, in announcing an agreement to fast-track over 780 housing units over the next three years in my riding.

This initiative is part of a broader vision to create over 41,500 new homes in the next decade, supported by a $31-million investment from the housing accelerator fund for Richmond Hill.

I am also proud to witness the government's substantive investments in our community that demonstrate what can be achieved with innovation, collaboration and a steadfast resolve to address the housing needs of Canadians in Richmond Hill and across Canada. I congratulate the Municipality of Richmond Hill for its innovative housing action plan and the broader community in Richmond Hill, as well as other municipalities within the York Region that are the recipients of this fund.

In addition to addressing housing needs, the government is acutely aware of the challenges posed by global inflation, particularly the high cost of food, and is actively working to alleviate the burden on Canadians. Recognizing the importance of affordability in daily life, we implemented new measures last fall to make groceries more accessible and more affordable. Key among these initiatives is the amendment of the Competition Act, through Bill C-56, the affordable housing and groceries act. This amendment aims to enhance competition in the grocery sector, thereby helping to lower costs and offering Canadians more choices in their grocery shopping.

Furthermore, we are actively working on securing commitments from Canada's five largest grocery chains, which constitute 76% of the market, to assist in stabilizing prices for Canadians. The establishment of a grocery task force further bolsters these efforts. This task force is not only supervising the efforts of major grocers to stabilize prices but also actively monitoring and investigating other practices in the sector, such as shrinkflation. As we move forward, the government remains vigilant and committed to ensuring that Canada's largest grocers uphold their promise to stabilize prices.

The bill would also advance the government's fiscally responsible plan to build a cleaner, stronger economy. It would introduce measures to create well-paying jobs, generate growth and build a cleaner economy that works for everyone by advancing Canada's competitiveness through the implementation of investment tax credits. The government has been in the position to be the third-largest recipient of foreign investments, which is the envy of the world. Investment tax credits are a key part of the government's broader plan to work with industry toward the goal of decarbonization, which includes the carbon capture, utilization and storage investment tax credit.

It is evident that Bill C-59, the fall economic statement implementation act, represents a comprehensive approach to some of the most pressing challenges facing our nation, namely affordability, the environment, housing and security. In essence, supporting Bill C-59 means endorsing a strategy that balances economic growth with environmental stewardship and social responsibility. It is a step toward not only addressing the immediate needs of our citizens but also securing a healthier, more prosperous future for Canada.

[Scot Davidson, Conservative, York—Simcoe, ON]

Madam Speaker, I have to say I am shocked. In his speech, the member mentioned cutting red tape, and breaking news is that the Canadian Federation of Independent Business' Paper Weight Award for the most absurd red tape just went to the Canada Border Services Agency, Health Canada and Finance Canada. What do they all have in common? It is the $54-million ArriveCAN app.

The member sat with me on committee yesterday and voted against a common-sense motion to cut red tape, so he is upside down. He obviously wrote his speech two days ago. Could he clarify how the federal government, with Bill S-6 languishing in the House, is actually cutting red tape and making that a priority?

[Majid Jowhari, Liberal, Richmond Hill, ON]

Madam Speaker, I would like to acknowledge that the hon. member did appear at the OGGO committee on Monday, which I believe was his first appearance in the many sittings we have had.

However, a motion for study has absolutely nothing to do with cutting red tape, or citing unrelated and unsubstantiated references as a preamble and asking the government to remove all red tape across all services, across all sectors, within 30 days. So, if there is anybody who is upside down, I think it is the member and his party. It is upside down to be asking us, representatives of the people, to remove all regulations and remove all red tape within 30 days across all sectors.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Madam Speaker, the government brags about being a great environmentalist and bringing in all the necessary measures to protect the environment. Nevertheless, the government has offered the oil companies tax credits to the tune of $83 billion in the last two budgets. We can add to that the billions of dollars it is giving them to set up carbon capture plants, which the International Energy Agency says are an illusion, an experimental technology.

Can my colleague tell me what real measures the government is going to bring in to truly support the economy and the environment?

[Majid Jowhari, Liberal, Richmond Hill, ON]

Madam Speaker, I have the privilege of working with the member as well in our government operations committee, and I find her quite ethical and supportive.

On the environment, our government, from day one, supported measures that protect the environment, which is one of the four pillars that this government has been focused on.

As it relates to the tax credit for businesses, specifically oil and gas, with a focus on capturing CO2, capturing carbon, this is a best practice and it is being done. I am not sure what the hon. member is talking about in that these are phantom policies; they are not, they are best practices. Also, we are working with industry to make sure that not only do we support it in protecting the environment but also enable the labour force, the Canadians who are in that sector, by supporting them through various labour laws.

[Leah Gazan, NDP, Winnipeg Centre, MB]

Madam Speaker, as members know, we have an affordable housing crisis in this country. Part of the issue is the current Liberal national housing strategy and the Liberals' definition of affordable. Their definition of affordable is not affordable. We need more affordable housing with rent geared to income. We need more co-op housing. I am wondering if the hon. member across from me feels it necessary to actually create a definition of what “affordable” really is so that more people are not left out on the streets.

[Majid Jowhari, Liberal, Richmond Hill, ON]

Madam Speaker, indeed, I agree with the member across that we need more affordable housing, and we need to make sure that the price of the house, whether it is affordable or community-based housing, etc., is reflective of wage growth.

The whole issue of affordability, of being able to secure a home for one's future, is something that our government is committed to and continues to work on. As members heard during question period, we are rolling out, every day, measures to be able to help Canadians secure their homes.

[Sean Casey, Liberal, Charlottetown, PE]

Madam Speaker, I am pleased to rise today on behalf of the residents of Charlottetown, the birthplace of Confederation, in support of Bill C-59, the fall economic statement implementation act, as tabled by the Deputy Prime Minister and Minister of Finance.

These last few weeks, I have had the privilege of spending time in my constituency and having meaningful conversations with residents about their priorities, their concerns and their hopes. In doing so, I have heard their message loud and clear: Canadians want their government to manage the needs of today while having a solid plan for tomorrow. That is why I am pleased that our government’s fall economic statement reconciles these equally urgent demands through a fiscally responsible plan that addresses the concerns of Canadians and lays a foundation for the future.

The statement focuses on several key areas, the first of which is housing. We know that housing is top of mind for Canadians of all ages, from young first-time homebuyers to seniors looking for accessible housing that would allow them to stay in their communities as long as possible. In 2019, this chamber recognized that, in Canada, housing is a human right. Our government is making sure that this right is within reach for everybody, regardless of income or region.

In Prince Edward Island, our housing supply is currently increasing at only a third of the necessary pace for all Islanders to have a place to call home. It is critical that we build more homes, faster. The housing initiatives in Bill C-59 include an additional investment of $15 billion for the apartment construction loan program, which would provide low-cost financing to builders and developers and would speed up financial approvals to federal housing construction programs. These initiatives would directly address the need to increase our housing supply. Indeed, along with existing programs, they would create over 200,000 new homes in the next eight years.

I would like to take a minute to celebrate one of these existing programs, the housing accelerator fund. Since September, our government has signed agreements with municipalities to build over 21,000 new homes from coast to coast. By working with local governments, we are ensuring that we are meeting the unique housing needs of each town and city while also laying the groundwork for long-term housing sustainability.

In Prince Edward Island, one of these agreements has been signed with the City of Summerside. The City of Charlottetown is in the final stages of negotiations to conclude an agreement with the Government of Canada. It has been a long process because the Minister of Housing, Infrastructure and Communities has, basically, pushed a hard bargain, but it appears that we are very close to being able to make an announcement. I look forward to that day.

Our government is also increasing access to the existing housing supply by cracking down on non-compliant short-term rentals. Bill C-59 would deny tax deductions for those short-term rental operators who do not abide by the proper provincial and municipal licensing requirements. We would also invest $50 million over three years to support enforcement of municipal restrictions on short-term rentals. I am particularly pleased by this measure as short-term rental regulations came into effect in my riding in the city of Charlottetown just last November, and proper enforcement would bring hundreds of units back into the long-term rental market and would make it easier for Islanders to find a home.

Just to give a little local context, Prince Edward Island is a place with 180,000 people, who receive 1.5 million visitors a year. Therefore, if someone is in the short-term rental market, it is a pretty lucrative business. Because it is a pretty lucrative business, it has a significant impact on the housing stock. That measure contained in the fall economic statement would be a very significant aid to ensure that short-term rental operators stay within the established rules. Those rules have been thoughtfully put together by Charlottetown city council to address the challenge we have around short-term rentals, around the housing stock, which is all tied into how lucrative it is because of how popular Prince Edward Island is during the tourist season.

When we look at housing, our government is addressing not only supply but also affordability. I would like to quote the PEI Fight for Affordable Housing, which advocates for safe, affordable and accessible homes. “Governments must be ready and willing to intervene in the market in order to preserve existing affordable housing which is at risk.”

This is the political leadership that Bill C-59 shows, by removing GST from new co-op rental housing and investing $1 billion over three years to support non-profit, co-op and public housing providers in building more than 7,000 affordable homes by 2028.

These are welcome initiatives that will allow middle- and low-income Canadians to access safe, stable homes to live and thrive in. Again, just in the riding of Charlottetown, a city of 45,000 people, under the national housing strategy we have received more than $80 million and have built or are in the process of building 430 homes. About half of those are deeply affordable under the national co-investment fund or the rapid housing initiative, and the other half are below market rents.

These are not just photo ops. All but one of those projects are built and fully rented. When I say fully rented, I mean no vacancy. That is the case right across Prince Edward Island, with the challenge we have with supply.

For current homeowners, Bill C-59 introduces the Canadian mortgage charter, which looks at new measures for tailored mortgage relief and ensures that Canadians are informed of their mortgage relief options at a time when interest rates are high. This is a crucial initiative that will help homeowners keep their homes through financial difficulty.

Through Bill C-59, we are demonstrating the commitment to support all Canadians, be they renters, potential homebuyers or mortgage-holders, in meeting their housing needs for generations to come.

The fall economic statement also recognizes the challenges facing seasonal workers. Included in the fall economic statement is something called pilot project 22. Pilot project 22 will provide four additional weeks of EI benefits for the regions of this country that have the most seasonal workers. That includes all of Prince Edward Island. This will be a significant benefit to all seasonal workers on P.E.I. It is, however, a band-aid.

It is a band-aid that has been proven necessary by a cynical political manoeuvre that happened to seasonal workers in Prince Edward Island in the dying days of the Harper government, in October 2014, when Stephen Harper split P.E.I. into two zones and, in so doing, favoured one part of the island, pitting islanders against one another. People working beside one another in the same seasonal operation were treated differently at the end of the season.

This is compounded, quite frankly, by the last eight years of our government, during which we have not reversed this cynical manoeuvre. I am here, on behalf of the people of Charlottetown, to say that Stephen Harper should never have done it to us, but it should be fixed by now.

That has been a recommendation from the Standing Committee on Human Resources on a couple of occasions. It has been in the mandate letter of the relevant minister, this one and the previous one, but we are still in a situation in which we are putting a band-aid on this problem. That band-aid will help those who are eligible for EI, but it does not help those who are not eligible and who are on welfare because their period ran out because of what Stephen Harper did.

That is the situation. It is a good thing as far as it goes.

Over the last eight years our government has introduced a Canada child benefit, which has lifted over 400,000 children out of poverty since 2015. We have worked with the provinces to deliver $10-a-day child care, which will deliver 250,000 new affordable child care spaces by 2026. Through these measures, we will continue to support families.

The measures I have highlighted, as well as all others contained in the fall economic statement, build on the work that we have already done and set the stage for the next few years.

I am, again, pleased to speak to this ambitious, fiscally responsible statement and how it will address the needs of hard-working Canadians. I encourage every member of this chamber to support the statement and vote in favour of Bill C-59.

[Stephen Ellis, Conservative, Cumberland—Colchester, NS]

Mr. Speaker, it is interesting to hear the rosy picture that the member across paints, but in his own province it would appear that there are 700 families each month going to a food bank, which is an increase of 200 per month over two years. In 2015, the average rent in P.E.I. was $790 a month. It is now more than $1,750 a month. Violent crime, from 2021 to 2022, in one year, increased 5.5%. Could this member please explain to all those great Canadians who are listening, including those in P.E.I., why the great job his government is doing has led to the crime and chaos, doubling of mortgages and doubling of rent that we see all across this great country for which his government is responsible? Shame on you.

[The Deputy Speaker, Conservative, Chris d'Entremont]

That is shame on, “through the Chair”.

The hon. member for Charlottetown.

[Sean Casey, Liberal, Charlottetown, PE]

Mr. Speaker, I also expect, as someone who has advocated so strongly and so successfully for the removal of HST on psychotherapy services, that the member will be supporting Bill C-59. I expect that it is in Bill C-59 because of the member's advocacy.

There is no denying that we are in tough economic times. There is absolutely no denying that and that is the reason for the measures that are in Bill C-59. That is the reason for $10-a-day child care. These measures are working. There is a lot of work to do; I acknowledge that. There are people who are hurting and we will continue to be there for them.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Mr. Speaker, the budget statement was read for the first time last fall. It is now the end of January, and February is just around the corner. We expect a budget to be presented in March or April.

At the rate things are going, does the member really expect his government to successfully get bills passed? It seems to me that the Liberals' legislative calendar has been very sparse for the past two or three years.

Does my colleague sincerely expect to see this bill passed before the next budget? Are we doing all this for absolutely nothing?