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.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Certainly. I also have faith in the Calgary business community. I was in Calgary just six days ago, and I met with representatives of the oil and gas sector and of the renewable sector. They told me specifically to get Bill C-59 passed now and that they needed those tax credits.

I know you're an MP from Calgary, so I thought you would like to know that.

[Chrystia Freeland, Liberal, Deputy Prime Minister and Minister of Finance]

I do know that it will Daniel Blaikie's last day. His family is here. It's nice to acknowledge that they're here. Maybe if you ask me a question, I'll say a few things about him.

I'll just start with a few opening remarks.

Thank you, Mr. Chair.

I am very pleased to appear before you and the members of the committee to discuss Bill C-59, Fall Economic Statement Implementation Act, 2023 and the main estimates.

Before I begin, I'd like to take a moment to pay tribute to the life of Brian Mulroney. I want to recognize one moment in particular that was really meaningful to me and to many Canadians.

In December 1991, the people of Ukraine voted overwhelmingly for independence in a national referendum. I was there as a reporter covering it. The day afterwards, Brian Mulroney as Prime Minister of Canada took the initiative, and was the first western leader to recognize an independent Ukraine. That was a historic act and a historic decision. It was a great thing he did for Canada.

Since then, Canada and Ukraine have developed deep and significant ties that have steadily strengthened, particularly now, as we stand with Ukrainians in their heroic ongoing battle to preserve their democracy.

On behalf of the Government of Canada, I would like to take this opportunity to extend my deepest condolences to the Mulroney family and commemorate a truly great Canadian leader.

Bill C-59 is central to our economic plan, whose intent is to help make life more affordable, to build more housing and to create good jobs from coast to coast.

I would like to start with a bit of economic data.

Inflation in Canada fell to 2.8% in February. That was down from 2.9% in January, and down from its peak of 8.1% in 2022. Inflation has now been within the Bank of Canada's target range for two months in a row. That is good news for all Canadians and for all members of this committee.

Earlier this month, DBRS reaffirmed Canada's AAA credit rating with a stable outlook. That's a powerful proof point of our government's fiscally responsible approach. All of this is progress, but we know that so many Canadians, especially young Canadians, are still struggling to make ends meet and feel confident about their future.

Our economic plan will change that. That is why I'm so glad to be here to talk about Bill C-59 and why it's so important to pass this bill into law.

Here are some of the important measures in the bill, which I hope will be supported by the members.

It does away with the GST on new residential buildings designed specifically for rentals under eligible co-operative housing projects.

We're making the math work for builders by creating incentives for them to build more homes that would otherwise not move forward to construction.

We are making our generation's most significant amendments to Canada's competition law, a transformation that will help stabilize prices and broaden choices available to Canadians. To make it possible for people to receive the mental health support and care they need, we are eliminating the GST and HST on counselling and psychotherapy services.

We are delivering a transformational investment tax credit for carbon capture, utilization and storage and an investment tax credit for clean technology. These are the first two of our five major investment tax credits. It is absolutely urgent to pass these measures into law as soon as possible. Investors need that certainty.

We're supporting Canadian workers by linking these investment tax credits to historic labour requirements. They will give businesses an incentive to pay a prevailing union wage and to create apprenticeship opportunities.

The swift passage of Bill C-59 would enshrine these two major investment tax credits into law and ensure that companies could create well-paid jobs and attract more investment to Canada.

Bill C-59 presents real, concrete action to address the challenges that Canadians are facing. That is why I'm urging all MPs who are here to support the bill's swift passage.

Thank you.

I would now be happy to answer any questions you may have.

[The Chair, Liberal, Peter Fonseca]

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

With us today, we have the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance. Welcome, Minister.

Joining the Minister is the deputy minister of the Department of Finance, Mr. Chris Forbes. Welcome.

We look forward to hearing your remarks and answers to questions from members.

Minister, I'm sure you already know that one of our colleagues here at committee and from Parliament, MP Daniel Blaikie, is having his last day here at this committee.

Minister, the floor is yours.

Opposition Motion—Carbon Tax

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, it is always a privilege to rise in the House and an honour.

I am splitting my time with my colleague, the hon. member for Beaches—East York, who, I think, asked a question a little bit ago.

As today is actually Father's Day in the heritage country that my family is from, I want to say buona Festa del Papà to my dad back in Vancouver. I actually just spent a few days with my family and parents in Vancouver last week for March break. It was great to see them doing well.

Before I give my formal remarks, today we had the consumer inflation report produced for the month of February in Canada. We had some really good news. As an economist, I saw the consumer price index was below 3%, at 2.8%. Looking at the details, the first headline in that report indicates that “Canadians pay less for cellular services and Internet access services”.

This debate is about affordability and carbon pricing, so we will talk about that. However, to start off, I just want to read two things:

Consumers who signed on to a cell phone bill plan in February paid 26.5% less year over year, following a 16.4% decline in January. The year-over-year decline was driven by lower prices for new plans and increases in data allowances for some cellular [services].

Similarly, prices for Internet access services fell 13.2% on a year-over-year basis in February, stemming from a monthly decline of 9.4%....

Grocery inflation continues to ease.

Prices for food purchased from stores continued to ease on a year-over-year basis in February (+2.4%) compared with January [which was at 3.4%]. Slower price growth was broad-based with prices for fresh fruit (-2.6%), processed meat (-0.6%) and fish (-1.3%) declining....

This is progress and we are seeing it across the board. The core inflation rate was also very well contained. I anticipate and do hope, as an economist and in my role as a member of Parliament sitting on a couple of committees, to see the Bank of Canada take some action to reduce rates later this year, which I think is timely and well needed. Inflation is well under control in Canada, and we have definitely had some good monthly prints.

I will now turn to the debate at hand.

I am very pleased to take part in this debate today.

Climate change is a very serious issue for our country, and I have to say that what we are seeing right now is worrisome. We had a very atypical winter. There is hardly any snow, and temperatures are much milder than we are used to.

Obviously, the impact of climate change is being felt across Canada. We have seen it over the past year with, for example, the storm that ravaged Nova Scotia and the historic wildfires that burned up hectares and hectares across the country. I am sure my colleagues will recall that the air was filled with smoke even right here in the capital. It was hard to breathe, even here in the House of Commons. Obviously, many people with respiratory problems suffered as a result. That is just one of the adverse health effects of climate change.

It is also important for us to realize that climate change is having a major impact on infrastructure in communities across the country. It has an enormous economic cost. I think we need to say it loud and clear: The reality is quite simply that Canada cannot afford to stand idly by and do nothing to combat climate change.

I am pleased to be part of a government that is taking this issue seriously and taking action. Obviously, this is a complex issue and there are no simple solutions. However, experts agree that our pollution pricing system is the best tool for reducing emissions while putting money back in the pockets of Canadians.

In fact, when carbon pollution pricing is applied correctly, as it is here in Canada, it effectively reduces greenhouse gas emissions and makes life more affordable for Canadians by ensuring that they get back more money than they pay in.

Every three months, and on April 15, we give hundreds of dollars back to families through the Canada carbon rebate. It gives eight out of 10 families more money than they pay in, while ensuring that the big polluters pay their fair share. In provinces where the federal fuel charge applies, a family of four will receive up to $1,800 in 2024-25 under the base Canada carbon rebate. I am pleased to say that the first payment for 2024-25 will go out next month. The other quarterly payments will follow in July, October and January.

In addition to paying these base amounts, the federal government is proposing legislative changes with Bill C‑59 in order to double the rural top-up starting this year, increasing it to 20% of the base Canada carbon rebate. It is important to us to recognize that rural residents have higher energy needs and more limited access to cleaner transportation options.

The Canada carbon rebate is just one way our government is helping Canadians pay their energy bills. The Prime Minister announced several new measures last fall to support Canadians. Since November 9, the federal fuel charge on deliveries of heating oil has been temporarily paused. This means that households using heating oil are getting more time and financial support to switch to a heat pump. We estimate that this measure will save a household using 1,500 litres of home heating oil $261 in 2023-24.

We are also moving forward with making the average heat pump free. With this measure, we are helping people with low to median incomes move away from oil heating in provinces and territories that have agreed to support the delivery of the federal government's enhanced oil to heat pump affordability grants. The grant for switching to a heat pump has now been increased to $15,000, on top of provincial or territorial grants of up to $5,000. Our government is also offering an upfront payment of $250 to people with low to median incomes who use heating oil and who sign up to switch to a heat pump through a joint federal-provincial government program.

As members can clearly see, our government is really helping Canadians in the green transition. Of course, that support builds on everything that we are already doing to support families that are struggling to make ends meet. For example, the Canada-wide early learning and child care system that we are in the process of implementing across the country will help many families to save a lot of money. Thanks to this new national system, families across Canada will be able to save up to approximately $2,610 to $14,300 per year for every child who attends a regulated child care facility. There is no doubt that this will make a big difference in families' budgets.

Our government continues to have the backs of Canadians, as it has from day one in 2015 to today. We will always put in place measures that aid Canadians on affordability, help grow our economy and provide a bright future for all families from coast to coast to coast, all those hard-working families that get up in the morning and do the right thing for their families and for this beautiful, blessed country we live in.

I look forward to questions and comments.

[Julie Dzerowicz, Liberal, Davenport, ON]

Mr. Speaker, I will be sharing my time with the very hon. member for Kings—Hants.

It is my absolute pleasure, as always, to be speaking on behalf of the residents in my riding of Davenport. I will be speaking to today's opposition day motion that was put forward by the Conservatives on affordability and pollution pricing. I will start with a few of my own comments and then I will go into a bit of prepared text.

As members know, climate change is real. Carbon emissions are impacting our climate and causing the climate to change. If Canada does not continue to rapidly move toward reducing emissions now, the cost of waiting will be more expensive for Canadians later. As a result, it will be a world that will be more difficult and more unpredictable to live in.

Last week, I happened to have been blessed to have the Minister of Energy and Natural Resources in my riding, and the question of the carbon tax came up by a Davenport resident, who said that given the fact that Canadians were suffering an affordability crisis and as of April 1 the price on pollution would go up, should people believe the Leader of the Opposition who was trying to convince a lot of Canadians that the price on pollution was a tax that would hurt Canadians?

The minister responded by saying that there were the facts and then there was perception, that putting a price on pollution would be the most economically efficient way to reduce carbon emissions and that if people asked 100 economists, 99 and a half of them would tell them that it was true. He went on to say that the way in which we had structured it was to do it in a way that would make it affordable for Canadians. Therefore, eight out of 10 Canadian families would get more money back than they paid, and it worked directly disproportionate to income. Those who lived on the most modest means would get much more money back than they actually paid. The people who received less money back than they paid were people who lived in 6,000 square foot houses, had a Hummer in their driveway and a boat in the backyard. At the end of the day, the fact that they paid more was because they were polluting more.

It was also noted that the Premier of Saskatchewan had decided that he would stop remitting the price on pollution for home heating. As a direct result of that, the rebate would go down for people in Saskatchewan, and the people who would suffer most would be the those people who were living on modest incomes. The premier was making poor people poorer because of the choices that he was making.

The motion before us is also proposing to do that for Canadians.

In 2023, we saw a record fire season in Canada in which the area burned was more than double that of the historic record, with hundreds of thousands of Canadians evacuated from their homes as a result. The total area burned exceeded 18 million hectares, which is two and a half times the previous record set in 1995 and more than six times the average over the past 10 years.

In its 2020 report on climate risks and their implications for the insurance industry in Canada, the Insurance Bureau of Canada also concluded that “The average annual severe weather claims paid by insurers in Canada could more than double over the next 10 years, increasing from $2.1-billion a year to $5-billion a year, and must be accompanied by an increase in premium income.” It is clear that there are very real costs associated with having one's house burn down or having to flee one's home and job due to an evacuation order.

We also know from experts and research that the most effective and efficient way to address climate change is to put a price on carbon pollution emissions, which are the chief cause of man-made climate change. Putting a price on carbon pollution reduces emissions and encourages reductions across the economy, while giving households and businesses the flexibility to decide when and how to make changes. It creates incentives for Canadian business to develop and adopt new low-carbon products, processes and services, and when it is done right, and we are doing that in Canada, it is both effective and affordable for Canadians.

On the Canada carbon rebate, the bulk of the proceeds from the federal pollution pricing system goes straight back into the pockets of Canadians in provinces where the fuel charge applies, with eight out of 10 households in these provinces continuing to get more money back through their quarterly Canada carbon rebate payments than they pay as a result of the federal pollution pricing system.

The federal government understands that we need to maintain the price signal that, over the long term, is necessary for carbon pricing to work and bring emissions down, but at the same time we have also shown that we are willing to be flexible and innovative in supporting options that will go even further to cut down on climate pollution in the long run.

We took temporary and targeted action to pause the fuel charge on heating oil with the goal of getting consumers off home heating oil and onto a cleaner and far more affordable alternative solution that will save them thousands of dollars and lower carbon emissions over the long run.

Measures such as this will make life more affordable in the right way, while supporting the goal of achieving a prosperous, low-carbon future for all Canadians.

We know that there are better ways to make life more affordable for Canadians, ways that do not involve destroying the environment and incurring more devastating costs further down the road. We are delivering this support where it is most effective, including with the oil to heat pump affordability program, which will increase the amount of federal funding that eligible homeowners can receive for installing a heat pump from $10,000 to $15,000. It includes proposing, under Bill C-59, a doubling of the Canada carbon rebate rural top-up rate, increasing it from 10% to 20% of the base rebate amount starting in April 2024. People who live in rural communities face unique realities, and this measure will help put even more money back in the pockets of families that are dealing with higher energy costs because they live outside a large city. We have been very clear that we will continue to implement our pollution pricing system while ensuring that we continue to put more money into the pockets of Canadian households and families.

More recently, through Bill C-59, the fall economic statement implementation act of 2023, we introduced measures to advance the government’s fiscally responsible plan to build a cleaner, stronger economy. It introduces 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. Investment tax credits are a key part of the government’s broader plan to work with industry towards the goal of decarbonization. This includes the carbon capture, utilization and storage investment tax credit, which is also known as CCUS.

CCUS is a suite of technologies that capture carbon dioxide emissions, whether from fuel combustion, from industrial processes or directly from the air, either to store CO2, typically deep underground, or to use it in other industrial processes, such as mineralization in concrete. These technologies are an important tool for reducing emissions in high-emitting sectors, where other pathways to reduce emissions may be limited or unavailable. In fact, the Intergovernmental Panel on Climate Change and the International Energy Agency each include CCUS deployment as an important element of scenarios in which the world achieves net-zero emissions. For its part, the CCUS investment tax credit will not only help Canadian companies adopt clean technologies but will also create jobs, ensure Canadian businesses remain globally competitive and reduce Canada’s emissions at the same time.

In conclusion, making life more affordable for Canadians while protecting the environment has always been a priority for the federal Liberal government, and it remains a priority today. I have outlined over the last 10 minutes just a few examples of how we are making targeted and responsible investments to help Canadians find an affordable place to call home. We want to ensure that Canada remains the best place in the world to live, work, go to school and raise a family. Making life more affordable is a key part of that.

It is a pleasure to speak on behalf of the residents of my riding of Davenport on this opposition day motion about affordability and pollution pricing.

I am now very happy to take any questions.

[The Chair, Liberal, Peter Fonseca]

That is the time, MP Thompson. Thank you.

We want to thank our very knowledgeable and hard-working officials who have answered many, many questions here for us today. I know you're going to answer more, because we're going to be sending you some emails.

I know, MP Blaikie, that you have your hand up.

I also want to say to members while I have you here that we have talked about how hard working our clerk is. He's the best clerk on the Hill. To help our clerk, when it comes to witnesses as we get into Bill C-59, I'm asking members to get the preliminary list of witnesses to the clerk by, let's just say, Tuesday of next week. Would that work? Okay. Get that list in by Tuesday, please. That would help the clerk to reach out to them, and we can have them all prepped and ready to come before committee. Thank you for that.

Now we'll go to MP Blaikie before we conclude.

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

Thank you, Mr. Chair.

Still on the subject of the Competition Act amendments, I'm interested in repair capacity rights, particularly in the automotive sector. We have to make sure that people can get their car repaired wherever they want. However, we see that filing a complaint would be a complex affair.

My question is more specifically about clarity in the bill. In my opinion, Quebec's and the U.S.'s right to repair legislation is clearer. For example, both acts stipulate that manufacturers cannot withhold information from the outset. However, it's getting harder and harder to demand access to car repair diagnostics. The data are often stored in the cloud.

Why was this not addressed more clearly in Bill C‑59, following the United States' and Quebec's lead?

[Julie Dzerowicz, Liberal, Davenport, ON]

Thank you, Mr. Chair.

First, I want to thank everyone here today. I think often it takes a room where you see a lot of people who've done a lot of hard work to know that there are a heck of a lot of people working in our government doing really important work, so I just want to say a huge thanks to all of you. I know all of you won't get a chance to speak today, but I thank you for being here. Thanks for your hard work.

Since our competition team is here, I might as well ask a question of them. I know that we've been working really hard as a government to try to improve our competition within Canada, and I know there have been elements in Bill C-56 in addition to Bill C-59 around modernizing our competition regime.

If you could, maybe talk to how the measures in Bill C-59 build on those measures that we've introduced in Bill C-56, which was, I believe, our budget. Thank you.

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

Thank you very much.

I just want to follow up with Mr. Hallan. I understand Mr. Hallan's questions, and I understand that there are frameworks, legislation and actions that have to be put in place, but presumably those actions are put in place to achieve results.

Certainly, in the private sector, if an investment is made, if a change is made, there's nearly always a calculation as to the return and what will be achieved. With respect to the changes in the fall economic statement and its implementation act, Bill C-59, what can consumers expect in terms of a reduction in prices?

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

I've never been interrupted by the chair before like that, but I'll move on.

I know we have more than 35 officials here. Have any officials done any analysis on Bill C-59 to see if the measures would lower grocery prices and what the exact number is?

Is there anybody?

I can see officials getting up and leaving.

I just need a number on how much this legislation would lower the grocery prices.

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

The reason I ask is that the finance minister said that with Bill C-59 or the FES, they were putting billions into building new homes. That's what the point of this was, according to her.

She also said that they will “unlock billions of dollars” to unlock more homes and get more homes built faster.

Are you saying that this legislation doesn't do any of that?

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

Thank you, Chair.

Can I call up the department of infrastructure, please?

Thanks, folks.

I just want to continue the questioning by my colleague, Mr. Lawrence.

I'll ask this one more time: For this legislation, Bill C-59, on the FES, is there any analysis on how many homes this legislation will build?

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

Thank you, Mr. Chair.

My questions are still on amendments to part 5, division 6 of the Competition Act.

Having said that, first I'd like to thank the clerk of the committee, Mr. Roger, for getting the commissioner's letter to us so quickly. We have the best clerk of all the House and Senate committees.

Mr. Simard, I expect that a gag order will be issued on the study of Bill C‑59, which would limit the length of our study. We're going to invite the commissioner and representatives of other organizations to appear. We may propose amendments to the bill. After the commissioner and the other witnesses have testified, if you have any additional information for us before we vote on the amendments, send it to us so that we can make a well-informed decision.

I want to come back to the second recommendation, which concerns greenwashing. My colleague Daniel Blaikie mentioned it. A number of organizations are telling us that prohibition of greenwashing products as part of the amendment to the Competition Act should also apply to environmental statements in general made by companies, such as allegations about the sustainability of their operations.

Can you comment on this amendment that could be proposed?

[Erin Cassidy]

Thank you, Erin.

Thank you for the question.

Bill C-59 proposes three types of amendments to the Criminal Code that are intended to address operational aspects of the anti-money laundering and anti-terrorist financing regime.

The first proposed amendment targets the laundering of proceeds of crime offence. What we have heard through our consultations and our engagement with provincial and territorial partners is that this offence is particularly challenging to prosecute and to obtain sufficient evidence on to go to prosecution. This is because, among other things, the offence requires that the accused have the knowledge or belief, or be reckless as to whether the property was obtained or derived from the commission of a designated offence.

In the case of money laundering committed by third parties—persons who are not engaged in the underlying offence that gave rise to the proceeds—it can be particularly challenging to establish that mental element, which is that knowledge or belief, or recklessness.

The amendments proposed some changes specifically to address third party money laundering. They establish a statutory inference—

[Patrick Weiler, Liberal, West Vancouver—Sunshine Coast—Sea to Sky Country, BC]

Thank you for that.

Beyond the changes you mentioned to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the Customs Act, there are some changes being made to the Criminal Code, particularly because these are offences that are very difficult to prove when you need to prove knowledge of some of these things.

I was hoping you might be able to speak a bit to that and how those standards are going to be addressed through Bill C-59.