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.

[Leah Gazan, NDP, Winnipeg Centre, MB]

I do think that we require a written answer, but I also think that it's very timely, because if you're not willing to change legislation when you're talking about child welfare systems that will essentially exclude 90% of the kids in care, it's probably not a very effective piece of legislation.

I know that the government currently has a bill in place—I believe it's Bill C-59—around adoptive care. I'm wondering if the government has any plans to ensure that they uphold the rule of law and make sure it's consistent with Bill C-15 and articles 19, 20 and 21 in terms of adoption care. Are there any plans for that?

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

Thank you, Mr. Chair.

Good morning, everyone.

I agreed to sign the letter requesting that this meeting be held pursuant to Standing Order 106(4). I'll be supporting the proposed motion, because the situation is deeply concerning.

However, the committee is short on time. We need to study Bill C‑59. I urge my colleagues to take the time to do the job properly, even though closure was invoked. We must take the time to listen to witnesses and improve the bill implementing last year's budget and last fall's economic statement. Later this spring, we need to study the other budget implementation bill coming up on April 16. That alone will keep us fully occupied. Furthermore, there are many other extremely important files. I would particularly like to know the status of the study that we began on green finance.

The situation currently under discussion was foreseeable. As Jasraj Singh Hallan said, while referring to the Equifax report, high interest rates and continually rising real estate prices are starting to lead to skyrocketing mortgage and credit card delinquency rates, along with an increase in bankruptcies. It's deeply concerning. However, it was foreseeable.

During our two weeks in our constituencies, I think that we should hold at least one meeting a week to discuss this deeply concerning matter. We can invite the experts, as proposed in the motion, to find out whether the situation is as alarming as reported. We can ask the experts. We can make a plan. Given the continually high interest rates, increasing property prices and the current situation, we can ask the government about its response and strategy. We must also have the chance to suggest proposals. I obviously don't agree with the analysis of Mr. Hallan or the Conservative members of Parliament regarding the carbon tax. However, the issue raised here, meaning the increasing delinquency rates and rising number of bankruptcies, is deeply concerning. It significantly affects the economy. We can try to see what can be done.

In short, we must focus on analyzing and improving the budget implementation bills, meaning Bill C‑59 and the bill associated with the budget in April. I also support the idea of reviving our study on how inflation and interest rates affect mortgages. The situation is changing. We need to look at the next steps.

I agree that we should hold at least one meeting a week during the last week of March and the first week of April, when we'll be in our constituencies. That way, we can study the matter.

Bill C‑59—Notice of Time Allocation Motion

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

I would like to advise that an agreement could not be reached under the provisions of Standing Order 78(1) or 78(2) with respect to the second reading stage of 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.

Under the provisions of Standing Order 78(3), I give notice that a minister of the Crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings at the said stage.

Business of the House

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

Mr. Speaker, I have good news today. We have announced a whole bunch more homes being built in Canada. We have reduced taxes on the middle class and increased them on the one per cent, and those guys voted against it. The budget is the best in the G7, and we have a great record on reducing poverty. All these things are well in hand without the bad track record of the previous government.

Later today, we will have the final vote on the motion regarding the Senate amendment to Bill C-35, an act respecting early learning and child care in Canada. Tomorrow will be an allotted day.

When we return following the constituency weeks, we will resume second reading debate of Bill C-59, the fall economic statement implementation act, 2023. On Wednesday of the same week, we will continue debate on the motion relating to the Senate amendments to Bill C-29, an act to provide for the establishment of a national council for reconciliation. Tuesday, March 19, and Thursday, March 21, shall be allotted days.

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

Thank you very much, your answer was very clear. If I understood it correctly, you could tell the psychoeducators who are asking us today whether they are covered by Bill C-59 that it will depend on how Revenu Québec's guidelines are interpreted.

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

Thank you, Mr. Chair.

First of all, I'd like to welcome all the officials and thank them for being here. It's rather awkward that we've had to suspend our work for half an hour, as we have a lot of questions to ask them and we're running out of time. I would also like to thank them for the documents they have provided. The briefing book on Bill C-59, which is some 800 pages long, is very useful, as are the other documents they have provided us with and those provided by the analysts. It's high-quality work that helps us a great deal in our work.

Since I have a lot of questions to ask and I'm running out of time, I'm going to hurry, even though it's difficult for elected officials.

First of all, I'd like to know if there's been an update of the table you provided when you appeared before us on March 30, 2023, which showed a breakdown by year and by item of the $83 billion granted in the form of environmental tax credits. I had also asked you to provide a breakdown of these expenditures by province. If the data has changed from the table you provided, I would like you to send a written update to the committee, and I would be very grateful if you could provide a breakdown of these expenditures by province, if possible.

[Lindsay Gwyer, Director General, Legislation, Tax Legislation Division, Tax Policy Branch, Department of Finance]

Thank you, Mr. Chair.

I'm Lindsay Gwyer, director general, legislation, at the Department of Finance. I'm here to talk about part 1. A number of my colleagues are also here to answer questions on part 1.

Part 1 contains the income tax measures in the bill. There are about 20 measures, so I won't be able to describe them all, but I'll just do a very high-level summary of several of the key ones.

First, there are a number of integrity measures in part 1. The first two relate to recommendations from the OECD's base erosion and profit shifting project. The first would limit the deductibility of net interest and financing expenses by certain corporations and trusts to a fixed ratio, which in most cases would be equal to 30% of tax EBITDA. The second OECD-related measure would implement rules to deal with hybrid mismatch arrangements, which are cross-border tax avoidance structures that exploit differences in income tax laws between two countries.

The bill contains other integrity measures, including an anti-avoidance rule to prevent private corporations from avoiding the refundable tax on passive income, as well as new rules to facilitate true intergenerational transfers, stemming from Bill C-208. Bill C-59 also includes a change to deny the deduction for dividends received by Canadian financial institutions on certain shares held as mark-to-market property, as well as changes to strengthen the general anti-avoidance rules. In addition, the bill will introduce a 2% tax on the net value of equity redemptions by certain Canadian corporations, trusts and partnerships whose equity is listed on a designated stock exchange.

The bill also includes a number of incentives and changes to tax credits. First there are two new refundable investment tax credits. The first would be available to taxable Canadian corporations on investments in eligible equipment used in carbon capture, utilization and storage projects. The second is another refundable credit available to taxable Canadian corporations and real estate investment trusts for investments in certain clean technology.

Other incentives and credits in part 1 of the bill include changes to the flow-through share rules to allow expenditures incurred in the exploration and development of all forms of lithium to qualify for the critical mineral exploration tax credit, changes to extend the phase-out by three years and to expand eligible activities for the reduced tax rates for zero-emission technology manufacturers, and changes to facilitate the creation of employee ownership trusts. Part 1 would also double the rural supplement for the Canada carbon rebate tax credit.

Those are the major measures in part 1. There are also a number of other more technical measures.

My colleagues and I would be happy to provide more detail on those or any of the measures I mentioned.

[The Chair, Liberal, Peter Fonseca]

I call this meeting to order.

Welcome to meeting number 130 of the House of Commons Standing Committee on Finance.

Pursuant to Standing Order 108(2), the committee is meeting only to discuss parts 1 to 4 of the subject matter of 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. Part 5 will be studied at a future meeting of the committee. Just for members' sakes, we're doing parts 1 to 4 today, and we'll do part 5 at a future meeting.

Today's meeting is taking place in a hybrid format, pursuant to Standing Order 15.1. Members are attending in person in the room and remotely using the Zoom application.

I'd like to make a few comments for the benefit of the members. Although this room is equipped with a powerful audio system, feedback events can occur. These can be extremely harmful to interpreters, causing serious injuries. The most common cause of sound feedback is an earpiece worn too close to a microphone. Therefore, we ask all participants to exercise a high degree of caution when handling the earpieces, especially when your microphone or your neighbour's microphone is turned on. In order to prevent incidents and to safeguard the hearing health of the interpreters, I invite participants to ensure that they speak into the microphone into which their headset is plugged and avoid manipulating the earbuds by placing them on the table, away from the microphone, when they are not in use.

I will remind you that all comments should be addressed through the chair. Members in the room, if you wish to speak, raise your hand. Members on Zoom, please use the “raise hand” function. The clerk and I will manage the speaking order as best we can, and we appreciate your patience and understanding in this regard.

Now I'd like to welcome our witnesses today for the study of the subject matter of 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. We have a number of officials from the Department of Finance who are joining us. Please note that all of these individuals will not be able to sit at the table. If questions arise for those individuals who are not at the table, they will be called and will exchange seats with those who are at the table to answer those questions.

I request that all officials clearly state their name and department before answering a question, please.

At the table, we do have a few individuals who will give us some opening remarks, and those will be on the different parts that we will be looking into today. We have Lindsay Gwyer, who will be addressing part 1; James Greene, who will be addressing part 2; and Amanda Riddell, who will be addressing parts 3 and 4.

Government Business No. 35—Extension of Sitting Hours and Conduct of Extended Proceedings

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Maybe on another day, Madam Speaker.

I am pleased to talk about the motion we have before us, which one would think every member of the House of Commons would support. People who are following the debate should have an appreciation of what the motion would do, which is fairly straightforward.

On the one hand, we are seeing a lot of legislation. The government has a very healthy and progressive legislative agenda, and there is a limited amount of time during normal work hours, because the hours are set. The motion would give the opportunity, where there is a great level of interest, to have more debate on specific legislation or an agenda item from the government by allowing an extended sitting. This means we would have the evenings to continue debate.

Why would anyone believe having more debate is not a good thing here on the floor of the House of Commons? When we factor in all the whining and complaining we hear from the Conservatives at times about wanting more debate time on legislation, we would be giving them what they want. However, I suspect the Conservatives are likely going to be voting against that. When they take their time to stand or register their vote on the hybrid system, they will likely be voting against having more time for debate.

This is one important thing that the legislation would do.

The other thing it would do is provide the opportunity for us to prevent 24-hour voting sessions. The last time this happened, back in December, I can recall coming into the House early in the morning, starting debates and so forth and then the Conservatives saying that they wanted a standing vote and were going to force everybody to vote for the next 20 hours or so. I am going to go into this in a bit and talk about some of the things we voted on.

At a workplace where one is literally dealing with billions and billions of tax dollars and is expected to be aware of the content being voted on, or at least I would like to think members are aware of what they are voting on, it would be reasonable to expect one would not have to vote around the clock.

I had seen a nice graph provided by the member for Kingston and the Islands. If one looks at the graph, one sees there is fairly good participation until it became bedtime for the Conservatives. All of a sudden, instead of having 90% participation, it starts to drop. Once 11 o'clock hit, or getting close to midnight, it really plummets on the Conservatives' side. The good news is I think they stayed just above the 50%. I am not 100% sure of that, but I think it was just above. It might have dipped below, but I do not know for sure.

The point is the Conservatives saw the light back then, because at least half of them did not have a problem taking a health break so they could be more awake for the remaining votes. What we are proposing is to put in place a rule that would enable not only the Conservative Party members to have their sleep time but all members of the House to have a health break. I see that as a good thing. At least half of the Conservatives should be voting in favour of that one; otherwise, they may have a tough time looking in the mirror because that is exactly what they did the last time we had a voting marathon.

The other thing it provides for is for third reading to take place on the same day for which report stage is approved. That is an important aspect. Let me make it relevant to something that happened today where we had a sense of co-operation. There was, for example, a Conservative private member's bill that came up for report stage. All it would have taken was for any group to stand up when report stage was called, and say they would like a recorded vote. In fact, that happens. As a direct result, debate ends, or technically, does not even start, and then it is dropped until the next time it appears for third reading.

Instead of doing that, because we understood that the member wanted to have the private member's bill, Bill C-318, debated, we agreed, and then debate started at third reading. If we as a government recognize the value of that, and if private Conservative members recognize the value of it, then one would think there has to be a good percentage of Conservatives who would agree that the government should be able to have the same sort of treatment. It is a common courtesy. It was in the best interest of all concerned to have that take place.

From my perspective, those are the three big things taking place in the motion. It begs the question why any member of the House of Commons would vote against the measures being proposed. The short answer is that there is, I will not say a hidden agenda, because it is actually quite obvious, but a tactic that the Conservative Party has been using for years. I often refer to it as a destructive force here on the floor of the House of Commons. There are some people, especially from the far right, and we can call them the MAGA element or whatever we want, who at times have a disdain for institutions like the House of Commons. They want to show as much as possible that it is dysfunctional, believing they benefit by that.

I want people to think about this: There is an opposition party that criticizes the government for not getting its legislation through, but the reason we cannot get it through is that the Conservative Party, the opposition party, is playing games and preventing it from going through. It does not take much to prevent legislation from going through in the normal process. We could allow 12 students from Sisler High School, Maples Collegiate, R.B. Russell, Children of the Earth or St. John's High School, any school in my riding, to sit in the chamber, and that could prevent legislation from passing. It does not take much at all.

I remind my Conservative friends to realize what a majority of members in the chamber have realized, and that was that in the last election, a minority government was elected. That means that the government has to, as there is no choice, work on consensus and build with at least one willing partner in order to get things through. Otherwise it is not going to happen. That is one of the things the government should take away from the last election.

The official opposition also has a role to recognize. The official opposition, in particular its current leader, has not recognized the responsibility given by the people of Canada back in 2021. That member has a responsibility that I have not witnessed. I have seen the games by members of the Conservative Party. They do whatever they can to prevent legislation from passing and then criticize the government for not getting legislation passed. There are so many examples of that. We just finished an hour of debate on Bill C-318. In fact, I was the last to speak to it. There is no doubt that Bill C-318 is a very important piece of legislation. Listen to what people actually say about Bill C-318. Is there anyone in the chamber who does not support the principles being proposed? I would argue no.

We understand the value of Bill C-318. That is why, as a political party, with the Prime Minister, we made an election promise to follow through with the principles of Bill C-318. Let us look at the last budget. There was some preliminary work a year ago on this same issue about adoptive parents and how we could ensure they would get EI benefits. If we look at the mandate letters the Prime Minister gives to ministers, we can see that those principles are incorporated in them. Everyone knows that the government is moving forward on the issue.

The kicker is that it is actually in legislation today, Bill C-59, the fall economic statement. It is a very important piece of legislation that would support Canadians in a very real and tangible way. Where is that legislation today? It is still in second reading. The Conservatives refuse to pass it. When we call it forward, they come up with games. They do not want that legislation to pass.

Let us look at what happened during the previous fall economic statement. We were debating the budget of 2023-24 while we were still on the 2022 fall economic statement. That is bizarre. The Conservative Party members refused to pass the legislation. They would rather filibuster, knowing full well that there is a limited amount of time. Any group of grade 12 students would be able to do what they are doing, so it is no great achievement, unless, of course, they are trying to prove something. They are trying to say that the government is ineffective because the institution is broken.

The problem with this institution is that we do not have an opposition party that recognizes its true responsibilities. Conservative members' major objective is to be a destructive force on the floor of the House of Commons. What is the impact of that? Let us go back to the private member's bill, Bill C-318. If they had passed the fall economic statement when it should have been passed, then Bill C-318 would be virtually redundant and not be a necessary piece of legislation. In fact, it would have provided even more for adoptive parents in a family unit than Bill C-318.

However, it is not the first time, if we think of the types of legislation we have brought through. Sometimes, Conservatives will even filibuster legislation they agree with, as well as legislation they oppose. I remember my first speech on the Canada-Ukraine trade agreement. I was very generous with my comments. I honestly thought everyone was going to support it. It is a trade agreement that even the NDP, the Bloc and the Green Party supported. For the first time ever, Conservatives voted against a trade agreement and slowed down the debate on that legislation. Here we have a country at war, whose president came to Canada in September to sign the first trade agreement for Ukraine, sending a powerful message during a time of war, and the Conservative Party turned their backs on Ukraine and ultimately prevented the bill from passing as soon as it can—

Employment Insurance Act

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

Madam Speaker, it is a pleasure to rise to speak to what is a very important issue. I trust there are many people following this debate, and for good reason. Our young people and children today are in fact a treasure. The member referred to love at the end of her speech, saying we cannot legislate love, but there are certain things we can do to provide supports that would enhance the relationships that are so critically important.

Many of the comments that have been made with regard to Bill C-318 are really good, and all members of the House, no doubt, would support them. When I listen to many members talk about the importance of the legislation, I cannot help but reflect on the last election. When we spoke with our constituents and voters, one of the issues that people enjoyed talking about was our children and how we can improve the system.

The government has demonstrated in that past a commitment to look at ways we can make changes to the EI system. We would love to be able to do more, and we constantly look at ways to improve EI and the resources affiliated with it. During the election, we as a political party made a commitment to do what is, in essence, being proposed by the member through her private member's bill.

What surprises me is that there is legislation today on this very topic that is at second reading. If the member proposing Bill C-318 were to look at the fall economic statement, she would find that there would be even more of a benefit for those who are adopting. It talks about having supports even before the date on which the family is united. I would suggest it is healthier legislation all around.

When the member introduced the bill for third reading, I posed a question with regard to what she and others are saying. Why would we not support that aspect, at the very least, of the fall economic statement? I would argue that there are lots of wonderful things in the fall economic statement, but that one is specifically there. The discussions and debates on the floor here should be a good indication of support for Bill C-59, the fall economic statement, and although I was not at the committee, I suspect there were good, healthy discussions there also. We know the bill is going to pass.

Because Bill C-318 was at report stage today, we could have very easily played a game and said we wanted a recorded voted, but we did not do that. We supported the Conservatives because they wanted to get to third reading today. There will often be recorded votes on private members' bills, but we did not request one because we recognize it was important for the member to have the debate, and it allowed us to have the discussion we are having right now, which is a good thing.

The changes, which are even greater and more beneficial for adoptive parents, are in Bill C-59. Today, where is Bill C-59, the fall economic statement, which was introduced last year? It is still at second reading. Why is it? It is because the Conservative Party is playing games with it.

Her own party is actually preventing Bill C-59 from passing. If Bill C-59 were to pass, then I suggest that the type of benefits that we are all talking about would be there, because it was not only an election platform issue for us as a government but was also supported by all members of the House. It was also in the mandate letter. It was referenced indirectly through the budget of 2023 a year ago and then brought in through the fall economic statement, so it is there. People can open it up and read it. The real issue is, why did it not pass in December 2023, or even earlier this month? The answer to that question is that the Conservatives, as we are going to find out shortly when we get into the next step after Private Members' Business—

[Irek Kusmierczyk, Liberal, Parliamentary Secretary to the Minister of Employment]

Madam Speaker, I am pleased to have the opportunity today to participate in this debate on the bill introduced by the hon. member of Parliament for Battlefords—Lloydminster.

I want to thank the member for bringing attention to an issue that matters to Canadians. Adoptive parents have been telling us that they want a new employment insurance benefit that provides them with the same number of weeks as birth parents. Currently, under the EI program, workers who are pregnant or have recently given birth, including surrogates, can receive 15 weeks of maternity benefits to support their recovery from pregnancy and childbirth. This is in addition to the 40 shareable weeks of standard benefits, or up to 69 shareable weeks under the extended option.

Adoptive parents also have access to support under the EI program. However, parents of adopted children are eligible for only 40 shareable weeks of standard benefits, or up to 69 weeks of support. In short, the difference lies in the fact that adoptive parents do not have access to the 15 weeks of benefits that parents who give birth do.

In 2024, this needs to change. That is why these improvements to the EI program are included in Bill C-59, the fall economic statement implementation act, 2023. The measures in Bill C-59 would create a new 15-week EI benefit that would add flexibility and better address the needs of adoptive parents and parents of children through surrogacy during the weeks surrounding the actual placement of the child.

The comprehensive measures in Bill C-59 reflect what we heard during our consultations with Canadians on the EI program in 2021 and 2022. They reflect the diverse and inclusive way families are formed today, and they provide needed flexibility.

Before I go into more detail about Bill C-59, let me outline how it resonates with the consensus we heard at the EI consultations on the issue of an inclusive program. In particular, the government absolutely acknowledges in Bill C-59 that adoptive parents and parents of children conceived through surrogacy have income support needs that are related to their unique processes. Time devoted to a child helps create a family bond. This is true for birth and adoptive parents.

In the case of adoptive parents, it can help the child make up for any developmental delays or health setbacks and give that child a better chance to reach their full potential. Every extra week spent with an adoptive child in the first year after adoption has an impact on their development and their lifelong relations with others.

There is no question that for any new parent, having the time and resources to welcome and care for their child or children is precious and requires support. Also, additional time for adoptive parents to be with their children can be beneficial for their employers, as it would put these parents in a better state of mind when they return to work.

There is no doubt that what the member opposite proposes, and what we propose, is important. Leave with income support for adoptive and intended parents, so they can welcome and care for their children, needs to be part of a modern and inclusive El program.

The proposal in Bill C-318 does this in part, but we consider our approach in Bill C-59 to offer the better, more flexible and more responsive solution to address this important need.

We expect that each year, the government's proposed benefit would provide approximately 1,700 Canadian families with additional time and flexibility as they welcome a new child in their home. Parents through surrogacy, including 2LGBTQI+ families, would also be eligible for this benefit, and rightly so.

The government's proposed El adoption benefit would make El benefits inclusive and reflective of families in Canada. It would support parents going through adoption or surrogacy by providing temporary income support before the child arrives at home, for example, while they are finalizing the placement or travelling abroad to bring the child or children to Canada. That support would also extend to the early weeks of the child's arrival into the new family.

This equalization was a key ask by our stakeholders. It is the right thing to do, and it is an idea whose time has come. All of this will happen if Bill C-59 receives royal assent.

I also want to note, as we were told during the EI consultations, that the profiles of children and youth being adopted are often unique. Adopted kids are typically older, have sibling groups and have special needs. Cathy Murphy, chairperson of the Child and Youth Permanency Council of Canada, told us this during the consultations:

Even if a youth is joining their family at age 12 or 13, it's really important for that parent or caregiver to be there, to be able to meet them after school or to maybe take them out to their favourite lunch spot over lunch hour once a week, because that's usually the only way you're going to get them out to lunch.

By continually showing up and being actively involved in their life, they are going to realize after an extended period of time that their parents are there for them.

For the past eight years, we have been busy improving important programs so that life is more affordable for Canadians. From day one, the government has kept its promise to protect all Canadians, and we are using all the tools at our disposal to do so.

Canadians want an EI system for the 21st century. The government has heard these calls. It is a long-haul commitment, but we are taking the time to get it right, and we are not waiting for a grand reveal to make improvements along the way. Let me reassure my colleague opposite that the Government of Canada is taking a thorough approach to EI to ensure its continuous improvement for the benefit of all Canadians. Adoptive parents have asked for equal treatment. They deserve equal treatment, and the government has answered.

[Michelle Ferreri, Conservative, Peterborough—Kawartha, ON]

Madam Speaker, I want to thank my colleague for all of her hard work on this file and this bill. As a mom of four herself, she has done incredible work.

My question for the member is this: What is different in the member's bill versus what was in the Liberals' Bill C-59? Why is it still really important that this bill get passed and get royal recommendation, so that intended and adoptive parents will get the leave they deserve?

[Rosemarie Falk, Conservative, Battlefords—Lloydminster, SK]

moved that the bill be read the third time and passed.

Mr. Speaker, as all parents know, the arrival of a new child is life-changing. It comes with great joys and excitement. It is a precious time of bonding and many firsts, but it also comes with added expenses, time constraints and new challenges. While we all know that Canada’s employment insurance program helps to ease some of those pressures, we must confront the fact that not all families are treated equally. It is not a fair program, and it does not reflect the diversity of families here in Canada.

Families formed through adoption and surrogacy continue to be entitled to 15 fewer weeks of leave, and this is a disadvantage that must be rectified. My private member’s bill, Bill C-318, does that through the creation of a new 15-week time-to-attach benefit for adoptive and intended parents. It also adjusts entitlement leave accordingly in the Canada Labour Code. It is a common-sense bill; addressing the inequity in our EI system should truly be a non-partisan issue.

Unfortunately, the Liberal government has instead chosen to politicize it. While it claims to support equal access to EI leave for adoptive and intended parents, the Liberal government’s actions suggest otherwise. At second reading, the member for Winnipeg North indicated that this was not a priority for the Liberal government when he said, “We might have had to put some limitations on some of the things we wanted to do as a result of the pandemic”. The member for Kingston and the Islands said that this bill would not get a royal recommendation because his own bill did not get one. Of course, this was followed by all but a handful of Liberal members of Parliament voting against the bill at second reading.

Following the committee’s consideration of this bill, the Liberal government challenged amendments that sought to remove any ambiguity around parental benefits for indigenous peoples. The opposition to this from the Liberals raises concerns about their intentions around achieving equal access to EI benefits for indigenous families with customary care arrangements.

Now, at third reading, this bill risks being dropped from the Order Paper altogether if a royal recommendation is not provided by the Liberal government. By all indications, unfortunately, this does not seem to be forthcoming. The Liberal government’s decision to include a benefit for adoptive and intended parents in Bill C-59 was a clear declaration that it does not intend to collaborate on this issue and that it is more focused on political games than rectifying the discrimination in our EI system in a timely manner.

Bill C-59 is an omnibus budget bill that would not course correct the harmful policies of the NDP-Liberal government, which are fuelling the affordability crisis in this country. The Liberal government not only tied its proposed benefit to a costly and convoluted omnibus bill but also did not even make this legislation a priority. It is the Liberal government that sets the agenda in this place, and it has not brought Bill C-59 up for debate since January. Frankly, it has just not been a priority for the Liberals. In fact, they have never made it a priority to address the discrimination in our EI system.

They have been promising this to adoptive parents since 2019; they extended this promise to intended parents last year, after I introduced Bill C-318. Providing equal access to EI leave for adoptive and intended parents should not be a complicated problem to solve, especially with the agreement of all opposition parties. However, the Liberal government has voted against Bill C-318, failed to provide the royal recommendation needed, refused to work collaboratively and failed to exercise the political will necessary to just get the dang job done.

Shamefully, the Liberal government’s broken promises, delays and political games are happening at the expense of families. These families are hopeful and anxiously waiting to know if they will get the time they need and deserve with their child. The children who do not get the time they need with their parents are the greatest victims.

Adoptive and intended parents are not less deserving, and they certainly do not need less time with their children. It is often the case that these families face additional challenges in bonding and attachment. Access to equal leave can go a long way to support them.

The Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities heard compelling testimony from adoptive parents and adoptees about the challenges they experienced attaching. We heard repeatedly how meaningful additional time to form strong and secure attachments would have been for their families and how 35 weeks was not enough time.

We need to listen to those voices and act in a timely manner. Cassaundra Eisner, an adoptee herself, shared with the human resources committee: “Moving in with people who were recently strangers is intimidating and very scary. Time to attach is something that would have helped that 11-year old little girl.”

Shelley Rottenberg, also an adoptee, shared that, if there had been more time early on, her mother would not have had “to worry about going to work and leaving me with someone else” and that it “would have sped up that process of growing and building that trust and the bond to have a more secure attachment.”

Cathy Murphy shared that it took three and a half years for her son to call her mama instead of “Hey, lady.”

Julie Despaties shared that she ultimately did not return to work after her leave, because she needed more time to support her three adopted children.

Erin Clow wrote that, near the end of her leave, she felt “a weight which is difficult to articulate, laden with the emotions of sadness, fear, guilt, and grief, knowing that we as a family need more time to attach.”

There are many more examples.

Providing adoptive families with an extra 15 weeks of leave is not only fair but will also help improve their long-term outcomes and help set these children up for success.

I have also heard from a lot of intended parents who are growing their families through surrogacy. These parents need to make a decision about their leave options in the immediate term; many are expecting their child and are hopeful that they will have access to an additional 15 weeks of leave.

I have also heard from parents who have made the decision to take the extended parental leave, at a significant financial disadvantage. Often it is not because they want to take a two-year leave, but rather because they want the same opportunity to be home with their child in the first year of their life. Canadians growing their families via surrogacy face a lot of added costs, and the disparity in benefits add to those financial pressures.

Child care is another consideration. It is more costly to get child care for an infant under a year old, and the reality across the country is that there are limited infant child care spaces. These added costs are made even worse given the growing affordability crisis.

Baden Colt shared with the human resources committee: “Having a child through surrogacy poses challenges that are not faced by most new parents, and these financial obstacles are compounded by the inability to access the same 15 weeks of maternity leave that most new parents get.” She said that children like her daughter “deserve every opportunity that her peers have in life and that begins with having the same amount of time to bond with her parents as any other Canadian child.” Her daughter does deserve the same time with her parents that is afforded to other children.

The Liberal government needs to set aside the partisanship and the political games that are costing families across this country the time to attach and bond with their children. It is well past time that all families, including adoptive and intended parents, get the time they need and deserve with their child.

Carbon Pricing

[François-Philippe Champagne, Liberal, Minister of Innovation]

Mr. Speaker, when it comes to fighting for Canadians, we will take no lessons from the Conservatives.

Today, I just appeared in front of the agriculture committee. It was shocking to see that one of the members was defending the profit margin of a foreign food processor, at a time when we should all be fighting for Canadians in this House. If the Leader of the Opposition wants to do something for Canadians, he should vote for Bill C-59 to increase competition in this country.

More competition means more choice, better prices for Canadians and more innovation. Canadians understand that. Will he understand?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

I appreciate that.

The key message is that we have your back. Canadians have seen that during the pandemic. Is that easy? No. Are the questions that were asked complex? Yes. Is it worth the fight? Definitely.

We know that grocery prices are one of the main concerns for Canadians on a weekly basis. We have taken more action, I would say, in the last six months than any government has. Sometimes when I hear the opposition questioning what I've done in six months, it's probably more than what has been done in 10 or 20 years in terms of reforming competition, making sure that we have a strong consumer affairs office, strengthening the enforcement tools of the Competition Bureau, calling on the CEOs to take action, and making sure that we have federal, provincial, and territorial colleagues all working in the same direction. It's almost unprecedented in our nation's history to see so much being done to tackle one specific issue for Canadians.

I would also say to my colleagues in the opposition that we are all here to serve Canadians. This is not a partisan issue. Food pricing is not a partisan issue. Competition is not a partisan issue. Offering more tools to consumers is not a partisan issue. I would really hope that what Canadians take out of this meeting, Mr. Chair, is that everyone recommits to work for them.

Families are faced with high food prices across the country. There's no magic solution. It's not like I could flip a switch that would immediately provide relief; however, it's trending in the right direction.

Do we need to do more? Definitely, and I appeal to the best judgment of all my colleagues in the House. to pass to Bill C-59, for example, and give more power to the Competition Bureau. I hope that Canadians will see that all of us who have been sent to Ottawa are fighting for them every single day. That's what they expect from us.

We want to be fair. We want to be constructive. We want more choice, more competition and better prices for Canadians. That's what I commit to do. That's what I will continue to do with your support, Mr. Chair.