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.

Request for Office of Speaker to be Vacated

[Lindsay Mathyssen, NDP, London—Fanshawe, ON]

Madam Speaker, it is a pretty critical point in the legislative agenda that has come up.

I agree with the Bloc Québécois member and her argument that there are many bills we would like to discuss.

I appreciate that this is a critical time right now. We have a lot of legislation that we need to discuss in the House, legislation that our constituents have sent us to this place to get through. It is serious things that are so important, such as Bill C-49, Bill C-59, Bill C-70 and Bill C-64. We have two opposition day motions just this week. We are trying to deliver the help that Canadians so desperately need, including through legislation like the fall economic statement, which the official opposition has filibustered at committee for months and which is something that would deliver a great deal of support in terms of housing.

Something I am particularly proud of as a part of that piece of legislation is actually the removal of the HST on psychotherapy and counselling services. It is something that would help those who are working within that profession, and something that I actually had a conversation about just yesterday with a psychotherapist who asked me when we would be getting the legislation passed. I said we are working on it and trying to make sure it goes through. The person I spoke to needs the fairness for the removal of the federal tax to occur. She spoke to me about how important it was for her clients to have equality within the services that are provided to them. We know, of course, that we are in a mental health crisis and that every bit of assistance helps in that regard. That is one piece of legislation that the official opposition has filibustered at the committee.

There are, of course, amendments to the Newfoundland and Labrador and Nova Scotia accord act that we need to get through. There is the foreign interference act, which is of course becoming more and more important as we move through this parliamentary session.

I do not know how many times New Democrats have to talk about how incredibly important pharmacare is. We certainly know that the official opposition does not believe that. I think about the millions of Canadians who rely upon that piece of legislation to help them afford the medications they need, diabetics in this country, and I believe there are 3.7 million of them, who need the legislation to go through so they would not have to worry about the cost of their diabetes medications and devices. So many constituents have written to me thanking me for moving that forward.

Those are the key pieces of law that we need to get moving in the House. Yes, we are sitting until midnight most nights to do that. New Democrats believe in that absolutely because it is for people that it is important. There is an opposition party determined to delay every single one of the bills. Time again, the Conservatives have obfuscated, filibustered, screamed and yelled in outrage and then attempted to delay and stall all of that progress, all of those supports. I find it unacceptable.

The fact is that what the Conservatives are now calling out, in terms of their outrage, is that the Speaker seems to have been caught up in supposed partisan activity that clearly was not of his doing. He did everything he was supposed to do, ran through the permissions that he was supposed to get, and yet mistakes were made. The partisanship that the Conservatives are so outraged about actually fuels their own partisanship fire of trying to find yet some other thing that they can hold on to, so much so that it will delay again all of the incredible supports that we need to get to people.

I see this every day, whether I am at the procedure and House affairs committee or here in the House. The Conservatives are desperate to cling on to anything they can, and destroy whatever we are trying to do in the process, to show that this place does not work, because that fits into their communication strategy. I am sorry, but I am not going to allow something to fit into their communication strategy to disrupt what needs to happen for my constituents.

The member across the way for Winnipeg North did quote the letter, but I want to mention it again. We are here, in this case, over a tweet that was sent out by the Liberal Party without having consulted the Speaker. The letter is very clear. It is from the national director of the Liberal Party, apologizing very clearly to the Speaker. It states, “The Liberal Party of Canada unequivocally apologizes to you for this mistake, and we take full responsibility.”

Was there a mistake made? Absolutely. Is it horribly unfortunate? Absolutely. Are we punishing the right person in this instance? No. Should there be more vigilance on this issue? Absolutely, of course. However, calling for the Speaker's resignation is clawing to the communication strategy that benefits one group. It does not benefit the entire House. I do not agree with that. We on this side of the House do not agree with that.

We have to work on the legislation that the people have sent us to work on. We have a very important job, and I have no time for all of the bickering and squabbling. Canadians need this place to work. They need us to get to work. We can make this all about ourselves or we can make it about them. Canadians deserve that. New Democrats want to help deliver the supports they need. The work is urgent, and the official opposition just wants to delay. That is all I have to say on this matter.

Department of Justice—Main Estimates, 2024-25

[Arif Virani, Liberal, Minister of Justice and Attorney General of Canada]

Mr. Speaker, I will be providing 10 minutes of remarks, and I will be welcoming questions from my parliamentary secretary, the member for Etobicoke—Lakeshore. I will be using my time to discuss measures in the recent budget to combat crime, especially auto theft and money laundering. I will also touch on legal aid investments and provide an update of our work on online safety.

Auto theft is a serious problem that affects communities across the country. Not only does it affect people's wallets, it also causes them to feel unsafe. The number of these thefts has risen and, in some areas, they are growing more violent. These criminals are increasingly emboldened. Our government is committed to ensuring that police and prosecutors have the tools they need to respond to cases of auto theft, including thefts related to organized crime.

We also want to ensure that the legislation provides courts with the wherewithal to impose sentences commensurate with the seriousness of the crime. The Criminal Code already contains useful provisions for fighting auto theft, but we can do more.

This is why we are amending the Criminal Code to provide additional measures for law enforcement and for prosecutors to address auto theft. Bill C-69, the budget implementation act, sets out these proposed measures. These amendments would include new offences targeting auto theft and its links to violence and organized crime; new offences for possession and distribution of a device used for committing auto theft, such as key-programming machines; and a new offence for laundering proceeds of crime for the benefit of, at the direction of, or in association with, a criminal organization. We are proposing a new aggravating factor at sentencing, which would be applied to an adult offender who involves a young person in the commission of the crime. These changes are part of the larger federal action plan on combatting auto theft that was just released on May 20.

Auto theft is a complex crime, and fighting it involves many partners: the federal, provincial, territorial and municipal governments, industry leaders and law enforcement agencies.

I will now turn to the related issue of money laundering. Addressing money laundering will help us to combat organized crime, including its involvement in automobile theft. However, the challenges associated with money laundering and organized crime go beyond auto theft.

That is why we are continually reviewing our laws so that Canada can better combat money laundering, organized crime and terrorist activity financing.

Bill C-69 would give us more tools to combat money laundering and terrorist financing. These new measures would allow courts to issue an order that requires a person to keep an account open to assist in the investigation of a suspected criminal offence. Currently, financial service providers often unilaterally close accounts where they suspect criminal activity, which can actually hinder police investigations. This new proposed order would help in that regard.

I hope to see non-partisan support from all parties, including the official opposition, on these measures to address organized crime. It would be nice to see its members support something, rather than simply use empty slogans or block actual solutions. We see this as well in their efforts to block Bill C-59, the fall economic statement, which has been in this chamber for literally months. That also contains a range of measures to combat money laundering, which have been asked for by law enforcement. For a party that prides itself on having a close relationship with law enforcement, I find this obstruction puzzling.

What is more, under Bill C-69, the courts will also be authorized to make an order for the production of documents for specific dates thanks to a repetitive production order. That will enable law enforcement to ask a person to provide specific information to support a criminal investigation on several pre-determined dates over a defined period. That means that the individual will be required to produce specific information to support a criminal investigation on several pre-determined dates.

These two proposals resulted from the public consultations that our government held last summer. We are committed to getting Bill C-69 passed by Parliament in a timely manner so that the new measures can be put in place as quickly as possible and so that we can crack down on these serious crimes as soon as possible.

I would now like to discuss our investments in legal aid. Just as we need to protect Canadians from crime, we also need to ensure that people have equitable access to justice, which is an integral part of a fair and just society, and a strong legal aid system is a key aspect of this. It strengthens the overall justice system. Budget 2024 includes measures to increase funding to criminal legal aid as well as legal aid for immigrants and for refugees to Canada.

For criminal legal aid, budget 2024 provides $440 million over five years, starting in 2024-25. This would support access to justice for Canadians who are unable to pay for legal support, in particular, indigenous people, individuals who are Black and other racialized communities who are overrepresented in the criminal justice system. Indeed, legal representation helps to clear backlogs and delays in our court system as well.

This essential work is only possible with continued collaboration between federal, provincial and territorial governments. The proposed increase to the federal contribution will assist provinces and territories to take further actions to increase access to justice. This legal aid will help with the backlogs I just mentioned. Unrepresented and poorly represented litigants cause delays in our justice system. Making sure that these individuals have proper support and representation will help ensure access to a speedy trial. This, in combination with our unprecedented pace of judicial appointments, 106 appointments in my first nine months in office, will also address backlogs. In comparison, the previous Harper government would appoint 65 judges per year on average. I exceeded that amount in six months.

For immigration and refugee legal aid, budget 2024 would provide $273.7 million over five years, starting in 2024-25, and $43.5 million per year ongoing after that. This funding would help support access to justice for economically disadvantaged asylum seekers and others involved in immigration proceedings. This investment would help maintain the confidence of Canadians in the government's ability to manage immigration levels, and to resettle and integrate refugees into Canadian society. To do this very important work, Justice Canada continues to collaborate with provincial governments and with legal aid service providers, as well as Immigration, Refugees and Citizenship Canada. Together, we are exploring solutions to support sustainable access to immigration and refugee legal aid services.

Before I conclude, I would like to talk a little about Bill C-63, which was raised by the member for Fundy Royal. The bill addresses online harms and the safety of our communities online. Much has already been said about this very important legislation, which would create stronger protections for children online and better safeguards for everyone in Canada from online hate and other types of harmful content. What is critical about this bill is that it is dedicated to promoting people's participation online and not to limiting it.

This legislation is informed by what we have heard over five-plus years of consultations with diverse stakeholders, community groups, law enforcement and other Canadians. This bill focuses on the baseline responsibilities of social media platforms to manage the content they are hosting and their duty to keep children safe, which means removing certain types of harmful content and entrenching a duty to act responsibly.

This bill is about keeping Canadians safe, which is my fundamental priority and my fundamental duty as the Minister of Justice and Attorney General of this country. It is about ensuring that there is actually a takedown requirement on the two types of most harmful material: child pornography and the non-consensual sharing of intimate images, also known as revenge pornography.

There are five other categories of material that would be dealt with under this bill, including material that includes inciting violence, incitements to terrorism, hatred as defined by the Supreme Court of Canada, bullying a child and also inducing a child to self-harm. I am speaking now not only as the Minister of Justice but also as a father. I think that there is nothing more basic in this country for any parent or parliamentarian than keeping our children safe.

I am thankful for the opportunity to speak about how we are making Canada safer and making our justice system stronger, more accessible and more inclusive for all people.

Fall Economic Statement Implementation Act, 2023

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

Before we proceed, I wish to remind hon. members of the Speaker's ruling of Tuesday, January 30, regarding 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. At the time, the Chair indicated that, pursuant to Standing Order 69.1, the question on the motion for the second reading would be divided to provide for separate votes on measures that were related to each other.

Furthermore, on November 8, 2017, at page 15145 of the Debates, Speaker Regan explained how the Chair intended to implement Standing Order 69.1. He stated, “The vote at third reading will be conducted in a similar way to the vote at second reading, assuming all of the identified elements are still part of the bill by the time it reaches that stage.”

Therefore, pursuant to Standing Order 69.1 the question will be divided at the third reading stage as follows:

First, the measures in clauses 1 to 136, 138 to 143, 168 to 196, 209 to 216, and 278 to 317 appear in the 2023 budget. Since their purpose is to implement certain budget proposals, they would be grouped based on this unifying theme and voted on together.

Second, the measures that can be grouped under the theme of affordability, clauses 137, 144, and 231 to 272, will be subject to a different vote.

Clauses 197 to 208 and 342 to 365 will also be grouped for voting because they amend the Canada Labour Code.

Clauses 145 to 167, 217 and 218 will be subject to a separate vote because they relate to vaping products, cannabis and tobacco.

The remaining divisions of Bill C-59, consisting of clauses 219 to 230, 273 to 277, 318 and 319, 320 to 322 and 323 to 341, will each be voted on separately because they are not linked to any of the common themes mentioned earlier. In all, nine votes will be held.

I would like to remind members that when putting the question on groups of clauses for Bill C-59, I intend to follow a procedure similar to that outlined in Standing Order 76.1(8) for the putting of the question on amendments at report stage.

I thank hon. members for their attention.

Bill C‑59—Time Allocation Motion

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

Madam Speaker, Bill C-59 creates a federal department of municipal affairs, which will bring with it more interference, bickering and delays, when the housing crisis requires fast action.

Members will recall that Pierre Elliott Trudeau attempted something similar in 1971, when he created the Ministry of State for Urban Affairs, which was an abject failure. The Ministry of State for Urban Affairs was a source of contention with the provinces for its entire existence and never managed to play a useful role. It was finally disbanded in 1979.

Why is the government trying to do the same thing again when it was such a failure the first time around?

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

Madam Speaker, I have a question for the minister.

Bill C‑59 provides for more than $30 billion for the oil industry. For example, there is the $12.5-billion credit for carbon capture, utilization and storage. I would like to quote what his former colleague, Catherine McKenna, said about it and then have him share his comments with us.

It should never have happened, but clearly the oil and gas lobbyists pushed for that....We are giving special access to companies that are making historic profits, that are not investing those profits into the transition and clean solutions. They are returning those profits to their shareholders, who for the most part are not Canadian, and then they ask to be subsidized for the pollution they cause, while Canadians have to pay more for oil and gas for heating.

What does the hon. minister think?

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

Madam Speaker, I would like to ask the minister about affordable housing and what Bill C-59 offers on affordable housing. My community in London, Ontario, is challenged with homelessness, as are many communities across the country.

What is also interesting, and I would love to hear commentary on this too, is that I never hear anything from the Conservatives about a plan to address homelessness or a plan to address the challenges we see on Canadian streets. This is something, if the Conservatives want to put themselves up as the official opposition, they have a responsibility to speak to, but they never talk about it.

[Ryan Turnbull, Liberal, Parliamentary Secretary to the Deputy Prime Minister and Minister of Finance and to the Minister of Innovation]

Madam Speaker, in the over 20 hours of witness testimony that was heard at the Standing Committee on Finance, we heard from industry about the importance of the investment tax credits that our government is launching, two of which are rolled out in Bill C-59.

Could the minister speak to the importance of those investment tax credits, in particular, the carbon capture, utilization and storage and the clean technology investment tax credits, in terms of their ability to mobilize capital to build a clean economy here in Canada?

Business of the House

[Steven MacKinnon, Liberal, Leader of the Government in the House of Commons]

Mr. Speaker, I know the government is approaching that issue with all the seriousness with which the Conservatives come up with their slogans, but I will move on to the House agenda.

This evening, we will resume debate on Bill C-59, the fall economic statement implementation act, 2023. Tomorrow morning, we will call Government Business Motion No. 39, concerning the pharmacare legislation. We will go back to debate on Bill C-59 in the afternoon.

Upon our return following the constituency week, we will resume debate on Bill C-69, the budget implementation act. I would also like to inform the House that Thursday, May 23, shall be an allotted day.

On the extension of sitting hours, I request that the ordinary hour of daily adjournment of the next sitting be 12 midnight, pursuant to order made Wednesday, February 28.

Finally, pursuant to Standing Order 81(4), I would like to designate Thursday, May 23, for consideration in committee of the whole of the main estimates for the Department of Justice. Furthermore, debate on the main estimates for the Department of Health will take place on the evening of Wednesday, May 29.

Carbon Pricing

[Jonathan Wilkinson, Liberal, North Vancouver, BC]

Mr. Speaker, I would encourage my hon. colleague to actually read Bill C-59, which would double the rural top-up. I would encourage him to actually read the letter from 300 economists across the country who say that eight out of 10 Canadians get more money back. Rather than simply axing the facts, he should do his homework.

Reference to Standing Committee on Procedure and House Affairs

[Niki Ashton, NDP, Churchill—Keewatinook Aski, MB]

Mr. Speaker, it is clear that this issue merits proper examination. At this hour, we have heard from many speakers that this must be taken seriously.

Will the member agree that this should be referred to PROC as soon as possible? Obviously, we gathered here to debate Bill C-59, which has issues of great importance to the citizens we represent. Will the member agree to speeding up the process and moving this to PROC as soon as possible?

Carbon Pricing

[Terry Duguid, Liberal, Parliamentary Secretary to the Prime Minister and Special Advisor for Water]

Mr. Speaker, there is a common misconception about carbon pollution pricing. It is not a tax. It is a measure recognized as one of the lowest cost and most effective ways of reducing greenhouse gases, and therefore, of tackling the adverse impacts of climate change, which are very real. It is also a measure that the government has designed to make life more affordable for Canadians.

Natural disasters are on the rise due to climate change, and we are all suffering the effects and the costs too. Last summer, forest fires forced tens of thousands of Canadians to evacuate their homes. There were also droughts in the Prairies, where the hon. member is from. There were intense hurricanes on the east coast, extreme flooding on the west coast, and melting permafrost in the north. What does that mean? It means we all need to accelerate climate action.

Carbon pricing is core to serious climate action. It provides an incentive to innovate and reduce emissions, while allowing businesses and households to decide for themselves how best to reduce emissions. Carbon pricing is not about raising revenues. All proceeds from carbon pricing are returned to the jurisdiction they were collected from.

The Canada carbon rebate, the CCR, returns fuel charge proceeds to Canadian residents through direct deposit or cheque every three months. Eight out of 10 households receive more money back through the CCR than they pay toward the fuel charge. Residents of these provinces living in small and rural communities also receive a rural top-up, which the government, under Bill C-59, is proposing to double from 10% of the base amount to 20%. The system actually leaves most families, especially low- and middle-income ones, better off financially.

Carbon pricing is a fair system that does leave more money in the pockets of Canadian workers, and that makes life more affordable for lower-income families. The benefits go way beyond that. It is a tool to help us create healthier communities and usher in clean growth and a more sustainable future for our children and our children's children.

Budget Implementation Act, 2024, No. 1

[Ryan Turnbull, Liberal, Parliamentary Secretary to the Deputy Prime Minister and Minister of Finance and to the Minister of Innovation]

Mr. Speaker, it is a great privilege to lend my voice today in support of Bill C-69, the budget implementation act, 2024. This budget is about what kind of country we want to live in and what kind of country we want to build together.

For generations, Canada has been a place where everyone could secure a better future for themselves and their children, and where a growing economy created opportunities for everyone to succeed. However, to ensure every Canadian succeeds in the 21st century, we know that we must grow our economy to make it more innovative, productive and sustainable. We must build an economy where every Canadian can reach their full potential, where every entrepreneur has the tools needed to grow their business and where hard work pays off.

Building the economy of the future is about creating jobs in the knowledge economy, in manufacturing, in mining and forestry, in the trades, in clean energy and across the economy in all regions of the country. To do this, our government's economic plan is investing in the technologies, incentives and supports critical to increasing productivity, fostering innovation and attracting more private investment to Canada. This is how we will build an economy that unlocks new pathways for every generation to earn their fair share. Bill C-69 is a crucial step in opening up these new pathways.

Bill C-69 takes us forward on the understanding that, in the 21st century, a competitive economy is a clean economy. There is no greater proof than the 2.4 trillion dollars' worth of investment made around the world last year alone in the transition to net-zero economies. Experts say we are at a global inflection point, with clean energy investments surpassing investments in conventional energy, with the cost of renewable technology dropping significantly, including wind, solar and heat pumps, as technology advancements are made and deployed at scale, and with companies that outperform their peers in decarbonizing more competitive and yielding higher returns for stakeholders.

As the big anchor investment decisions around the globe are being made to secure the global supply chains for the emerging clean economy, we need to ensure Canada is best positioned to compete and lead the way by seizing the massive opportunities to attract investment and generate economic growth that will bring decades of prosperity. That is why our government is putting Canada at the forefront of the global race to attract investment and seize the opportunities of the clean economy with a net-zero economic plan that will invest over $160 billion to maintain and extend our lead in this global race.

The cornerstone of our plan is an unprecedented suite of major economic investment tax credits, which will help attract investment through $93 billion in incentives by the year 2034-35. That includes carbon capture, utilization and storage, the clean technology investment tax credit, the clean hydrogen investment tax credit, the clean technology manufacturing investment tax credit, clean electricity and, added in budget 2024, an EV supply chain investment tax credit. These investment tax credits will provide businesses and other investors with the certainty they need to invest and build here in Canada. They are already attracting major job-creating projects, ensuring we remain globally competitive.

For example, just a couple of weeks ago, I attended the announcement in Alliston, Ontario, where Honda made the largest investment in Canadian automotive history, investing over $15 billion. This is a huge vote of confidence in our economy. Out of all the countries in the world, Honda chose Canada to build its comprehensive, end-to-end EV supply chain, which will mean thousands of good-paying jobs for decades to come. The federal investment tax credits were essential in remaining competitive and securing that generational investment. From new clean electricity projects that will provide clean and affordable energy to Canadian homes and businesses to carbon capture projects that will decarbonize heavy industry, our major economic investment tax credits are moving Canada forward on its track to achieve a net-zero economy by 2050.

In November 2023, our government introduced Bill C-59 to deliver the first two investment tax credits and provide businesses with the certainty they need to make investment decisions in Canada today. That bill also included labour requirements to ensure workers are paid prevailing union wages and apprentices have opportunities to gain experience and succeed in the workforce.

With Bill C-69, the budget implementation act, 2024, we would be making two more of these major economic investment tax credits a reality to attract more private investment, create more well-paying jobs and grow the economy.

First, it would implement the 30% clean technology manufacturing investment tax credit, which would be available as of January 1, 2024. This is a refundable investment tax credit for clean technology manufacturing and processing, and extraction and processing of key critical minerals equal to 30% of the capital cost of eligible property associated with eligible activities.

Investments by corporations in certain depreciable property that is used for eligible activities would qualify for the credit. Eligible property would generally include machinery and equipment used in manufacturing, processing or critical mineral extraction, as well as related control systems.

Eligible investments would cover activities that will be key to securing our future, including things like the manufacture of certain renewable energy equipment like solar, wind, water or geothermal. It would cover the manufacturing of nuclear energy equipment and electrical energy storage equipment used to provide grid-scale storage. It would cover the manufacturing of equipment for air and ground storage heat pump systems; the manufacturing of zero-emission vehicles, including the conversion of on-road vehicles; as well as the manufacturing of batteries, fuel cells, recharging systems and hydrogen refuelling stations for zero-emision vehicles, not to mention the manufacturing of equipment used to produce hydrogen from electrolysis. These are the technologies that will power our future.

Bill C-69's clean technology manufacturing investment tax credit would power the investment that is needed to build them today and build them here at home.

The bill would also make the clean hydrogen investment tax credit a reality, which would exclusively support investments in projects that produce clean hydrogen through eligible production pathways. This refundable tax credit would be available as of March 28, 2023, and could be claimed when eligible equipment becomes available for use at an applicable credit rate that is based on the carbon intensity of the hydrogen that is produced.

Eligible equipment could include, but is not limited to, the equipment required to produce hydrogen from electrolysis of water, including electrolyzers, rectifiers and other ancillary electrical equipment; water treatment and conditioning equipment; and certain equipment used for hydrogen compression and storage. Certain equipment required to produce hydrogen from natural gas or other eligible hydrocarbons, with emissions abated using carbon capture, utilization and storage, would also be eligible. Property that is required to convert clean hydrogen to clean ammonia may also be eligible for the credit, subject to certain conditions, at a credit rate of 15%.

It is important to realize that these clean economy investment tax credits work to incentivize investment and remain competitive but also do not stand alone. They are just part of the tool box that also includes legislation like the Canadian Net-Zero Emissions Accountability Act; the Canadian sustainable jobs act and amendments to CEPA, which is the Canadian Environmental Protection Act; regulations like the clean fuel regulations, the carbon pricing and oil and gas emissions cap; programs like the strategic innovation fund and many others; and the blended finance utilities that the government has launched, including the Canada growth fund and the Canada Infrastructure Bank. These all work together, and that is why we are seeing the results we are seeing.

Bill C-69's support for these investments comes at a pivotal moment when we can choose to renew and redouble our investments in the economy of the future, to build an economy that is more productive and more competitive, or risk leaving an entire generation behind.

With Bill C-69, we would not make that mistake. Our major economic investment tax credits are moving Canada forward on its track to achieve a net-zero economy by 2050. I could not be more proud of our work in this area.

Finance

[Peter Fonseca, Liberal, Mississauga East—Cooksville, ON]

Mr. Speaker, I have the honour to present, in both official languages, the following three reports of the Standing Committee on Finance.

First, I present the 17th report of the Standing Committee on Finance, in relation to 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. The committee has studied the bill and has decided to report the bill back to the House with amendments.

Second, I present the 18th report, entitled “Main Estimates: 2024-25”.

Third, I present the 19th report of the Standing Committee on Finance, in relation to the motion adopted on Thursday, March 21, regarding the excess profit tax on large grocery companies.

I want to thank the members and all those who helped us get these reports prepared for Parliament.

Grocery Industry

[Ryan Turnbull, Liberal, Parliamentary Secretary to the Deputy Prime Minister and Minister of Finance and to the Minister of Innovation]

Mr. Speaker, I know that the member opposite feels that grocery prices are too high, and they have been, certainly. However, the CPI index has shown that food prices are stabilizing in our economy, which is good news for Canadians.

What the government is doing is proposing multiple rounds of reforms to the Competition Act. It is good to see that the NDP and other parties are starting to work with us. Earlier this week, we got Bill C-59 through the finance committee, which was great progress on reforming the competition laws.

Carbon Pricing

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Madam Speaker, Canada's approach to carbon pricing is designed to reflect the true cost of pollution, incentivizing a collective move toward less carbon-intensive choices in energy production, home heating and transportation.

In provinces where the federal carbon pollution pricing system applies, the majority of fuel charge proceeds go right back into the pockets of individuals and families via the Canada carbon rebate, with the remaining proceeds returned through other programs to indigenous governments and small and medium-sized businesses. Residents in these provinces living in small and rural communities also receive a rural top-up, which Conservatives voted against in Bill C-59, which proposes to double the top-up from 10% to 20%. Our measures balance support and the environment together. It is through this approach that we will—