Bill C-59

Fall Economic Statement Implementation Act, 2023

An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023

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

Fall Economic Statement Implementation Act, 2023

[Yvonne Jones, Liberal, Parliamentary Secretary to the Minister of Northern Affairs and to the Minister of National Defence (Northern Defence)]

Madam Speaker, it is a pleasure to rise to speak to Bill C-59 this morning. I waited very patiently for my turn as many in the House were unfortunately challenging the Speaker's decision. We have been here a long time. I think the rules are quite clear.

I would like to speak—

The House resumed from January 29 consideration of the motion that Bill C-59, An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023, be read the second time and referred to a committee, and of the amendment.

Bill C-59—Proposal to Apply Standing Order 69.1—Speaker's Ruling

[The Speaker, Liberal, Greg Fergus]

I am now prepared to rule on the point of order raised on December 12, 2023, by the House leader of the official opposition, concerning the application of Standing Order 69.1 to Bill C-59, an act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023, and certain provisions of the budget tabled in Parliament on March 28, 2023.

According to the House leader of the official opposition, Bill C‑59 is an omnibus bill and therefore he asked the Chair to apply Standing Order 69.1(1), which provides as follows:

In the case where a government bill seeks to repeal, amend or enact more than one act, and where there is not a common element connecting the various provisions or where unrelated matters are linked, the Speaker shall have the power to divide the questions, for the purposes of voting, on the motion for second reading and reference to a committee and the motion for third reading and passage of the bill. The Speaker shall have the power to combine clauses of the bill thematically and to put the aforementioned questions on each of these groups of clauses separately, provided that there will be a single debate at each stage.

The member relied on Speaker Regan's decision of November 8, 2017, to argue that Bill C-59 should not benefit from the exception provided by Standing Order 69.1(2). This exception stipulates that section 1 does not apply if a bill “has as its main purpose the implementation of a budget and contains only provisions that were announced in the budget presentation or in the documents tabled during the budget presentation.”

The House leader of the official opposition contended that the implementation of measures announced in the economic statement of November 21, 2023, is not enough of a common element to justify grouping them for voting purposes. He also asserted that an economic statement is not, properly speaking, a budget. The member said that Bill C-59 should be divided in 16 for the purpose of voting. He further stated that two of the 16 pieces, which are similar to bills C‑318 and C‑323, should simply not be put to a vote at all, given that the House has already passed those bills at second reading.

In response, the parliamentary secretary to the government House leader pointed out that Bill C-59 mainly contains provisions implementing measures announced in the 2023 budget, along with some measures announced in the fall economic statement, whose common theme is addressing the affordability challenges facing Canadians. Consequently, he concluded that the measures included in the budget and those announced in the fall economic statement should be voted on together.

The Chair must first determine whether the main purpose of Bill C-59 is to implement the budget and whether it therefore falls within the exception provided by Standing Order 69.1(2).

The Standing Orders place very specific conditions on the consideration of budgets. For instance, a particular order of the day must be designated. Debate lasts a certain number of days, and votes take place at certain points in time. From start to finish, budgets are an integral part of the business of ways and means.

House of Commons Procedure and Practice, third edition, defines financial statements as follows on pages 901 and 902:

On occasion, the Minister of Finance makes an economic statement to the House, generally referred to as a ‘mini‑budget’, that provides basic economic and fiscal information that will be the subject of policy review and public debate leading up to the next budget. Unlike a budget presentation, these statements are delivered without notice and do not precipitate a budget debate. Notices of ways and means motions are also tabled on these occasions.

Budget presentations and economic statements are therefore related concepts, but each has its own unique characteristics.

Both the economic statement of fall 2023 and the budget of spring 2023 are very long and complex documents. As indicated in its title, “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”, Bill C-59 indeed contains many measures; some stem from the budget documents, others from the economic statement.

However, some measures are not to be found in either. The Chair takes the view that the main purpose of the bill is not the implementation of a budget, and the exception provided in Standing Order 69.1(2) does not apply in this case.

The Chair must now determine whether a common element connects the various provisions of Bill C-59 and, if not, to what extent all or some of the provisions are closely related. A broad common theme is not sufficient. As explained on November 7, 2017, at page 15095 of the Debates, the Chair must decide “whether the matters are so unrelated as to warrant a separate vote at second and third reading.”

In deciding whether a link exists, the Chair may consider several factors. Different measures may have a single objective or common elements, as the Chair found in its decision on Bill C‑4 on September 29, 2020, whose common element was a public health crisis. Cross-references between parts of a bill, or a lack thereof, may also be an indicator.

After completing this analysis, the Chair believes that Bill C‑59 should indeed be divided for the purpose of voting. As my predecessor noted on November 28, 2022, on page 10087 of the Debates, “[t]he objective here is not to divide the bill for consideration purposes, but to enable the House to decide questions that are not closely related separately.”

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

Second, the measures that can be grouped under the theme of affordability, clauses 137, 144, and 231 to 272, will be subject to a different vote. Clauses 197 to 208 and 342 to 365 will also be grouped for voting because they amend the Canada Labour Code. Clauses 145 to 167, 217 and 218 will be subject to a separate vote because they relate to vaping products, cannabis and tobacco.

The remaining divisions of Bill C-59, consisting of clauses 219 to 230, 273 to 277, 318 and 319, 320 to 322, and 323 to 341, will each be voted on separately because they are not linked to any of the common themes mentioned earlier. In all, nine votes will be held. The Chair will remind members of this division when the bill comes to a vote at second reading.

Finally, I would like to remind members of the Chair's ruling on December 12, 2023, which also dealt with Bill C-59. The Chair found that Bill C-318 and Bill C-323 can continue through the legislative process.

I thank all members for their attention.

[Irek Kusmierczyk, Liberal, Windsor—Tecumseh, ON]

Thank you, Mr. Chair, and again, I really do appreciate the work of my colleague Ms. Gazan, who has brought this amendment forward.

This is an important issue. It's an important issue that we absolutely take to heart. I can tell you that every one of my colleagues at this table takes this amendment and this issue very seriously.

But simply put, we want to study it further. We want to understand it better so we can act on it. We need to understand it. First and foremost, I do believe that the principle of “nothing without us” is absolutely paramount. We want to hear from first nations, Inuit and Métis here around this committee table and on Parliament Hill on this very issue, and I think it is an important issue.

It's important for those watching at home to understand that our government is bringing forward a bill that will introduce 15 weeks of EI for adoptive and intended parents. That bill is already in front of the House of Commons in the form of Bill C-59. That bill will introduce 15 weeks of EI for adoptive parents. It builds upon the works of this committee. There will be an opportunity with the government bill that's moving forward, and hopefully, with the support of our opposition members, Bill C-59 will pass in the House quickly. Right now it's facing some headwinds from our opposition colleagues, but we hope to see it pass quickly so that we can get those benefits into the hands of adoptive parents as quickly as possible.

That bill will have an opportunity to come before committee, and there will be opportunities for first nations, Métis and Inuit members to come to Parliament Hill to talk about kinship and customary care relationships to provide members of Parliament with information and with deeper understanding of what that means and of how it fits into this EI policy framework.

It is an important issue, and we feel that it is so important that we want to hear from indigenous partners and communities. There will be an opportunity as this bill is debated at committee, as Bill C-59, which contains the EI provisions for adoptive parents, is debated in committee.

The principle of “nothing without us” is absolutely paramount, and on an issue as important as this one, we believe that it is absolutely imperative that we hear from indigenous partners, indigenous communities. There will be an opportunity to do that as Bill C-59, our government bill that will introduce 15 weeks of EI for adoptive parents, is brought before committee very shortly.

With the help and support of our opposition partners, it will come before committee very quickly.

Thank you.

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

Thank you very much, Chair.

The substance of the amendment we are debating right now is to ensure that kinship and customary care will be added to this bill.

I find it very frustrating when MP Kusmierczyk makes the accusation that consultations weren't done, that they weren't completed and that the committee didn't hear. I've met with many stakeholders in the drafting of this bill. We also had many witnesses come here to testify. Does the excuse of an abstention due to lack of consultation mean there was no consultation put into Bill C-59? That would be my question.

We're voting in favour of this amendment to ensure that it is put into Bill C-318.

[Irek Kusmierczyk, Liberal, Windsor—Tecumseh, ON]

Thank you, Mr. Chair.

I want to begin by thanking the committee for bringing this debate forward on Bill C-318. I specifically want to thank the MP for Battlefords—Lloydminster for her work in bringing this study forward. I also want to say thank you to all the witnesses who testified and to all the parents and the adoptive parents for the incredible love and commitment they demonstrate. I believe the discussion we're having here....

The government bill that will be coming forward as well, which has already been tabled under Bill C-59, also recognizes that selflessness, commitment and love of adoptive parents.

I also want to thank my colleague Ms. Gazan for bringing this very thoughtful amendment forward. We want to do everything possible to make sure not only that the federal laws and policies that we bring forward align with and are consistent with UNDRIP and our responsibilities under UNDRIP, but that our policies, programs and laws also reflect the priorities of first nations, Inuit and Métis people in our country.

This is an important amendment that has been brought forward, and I believe it's an amendment that ought to be studied further. I believe it requires additional research and thoughtful conversation, and above all careful and considerate consultation with first nations, Inuit and Métis across Canada. This is important.

Obviously, children are at the very centre and heart of the work of this government, and so for that reason I do believe there are questions about this amendment that need to be answered. There is information that needs to be brought forward. I believe that there ought to be a process in place whereby that information can come forward to members of this committee as well as to members of government in designing these policies.

I do believe we are skipping an important step of consultation here, first and foremost, as well as deliberation and information, and so for that reason I will be abstaining from voting on this amendment.

Carbon Pricing

[Justin Trudeau, Liberal, Prime Minister]

Mr. Speaker, the Conservative leader likes to talk about the challenges Canadians are facing around the cost of living, but he refuses to take action and support them. He chose to delay the passage of Bill C-59, which is also hurting his own caucus.

Does the member for Battlefords—Lloydminster now suddenly oppose maternity leave for adoptive parents? Surely, the member for Cumberland—Colchester will not back down on his advocacy to remove the GST on therapy and counselling services.

While the Conservative leader is muzzling his own caucus and putting himself first, we will keep putting Canadians—

Fall Economic Statement Implementation Act, 2023

[Kody Blois, Liberal, Kings—Hants, NS]

Madam Speaker, happy new year to you and to all colleagues in the House.

Today, we have the opportunity to speak to Bill C-59, which is the legislation that would implement the initiatives in the fall economic statement before Christmas.

Before I get too much further, I will be sharing my time with the hon. member for Nepean.

One of the things I contemplated over the Christmas break was the decorum in this place. I know that will be something on which those who sit in the chair will be focused. I will commit to those who are here today, and indeed to the House, that we will have robust debate but we should try to keep it within the confines of respectful debate at the same time.

The fall economic statement from this government was focused on two core issues: affordability and housing. Those are top-of-mind issues at home in Kings—Hants. I want to talk first about the economic context, because affordability is a top-of-mind issue, but it is important for my constituents, and for Canadians across the country, to understand where we are at in the current economic context. If all they did was listen to the Conservative opposition bench, they would never really understand some of the positive things that are happening vis-à-vis Canada's economic growth and particularly our investment climate right now.

Inflation is a global issue. The last statistic by Statistics Canada shows that Canada had a 3.4% inflation rate in the month of December 2023, and we are working to try to help bring that under control. However, where does Canada rate in a global context? I pulled out some statistics from around the world: Germany, 3.7%; France, the same; U.K., just over 4%; and United States is on par with Canada. I would submit that Ireland, India, Australia and New Zealand are all comparable countries and they have higher inflation rates than Canada right now.

I know that is cold comfort. I do not say this to Canadians and to my constituents to suggest that this government will rest on its laurels, but it is important, because when we hear the opposition members talk, they suggest that Canada is a laggard in the world with respect to the affordability question. We have work to do and we will continue to do that work. However, make no mistake, it is important to contextualize that as we move forward.

How about our debt-to-GDP ratio? When we listen to the member for Carleton and the opposition, they would suggest that Canada is in a terrible situation vis-à-vis its debt-to-GDP ratio. That is not the case. Canada is actually a leader in the G7 with respect to net debt-to-GDP ratio and it also has the lowest deficit in the G7. Again, we do not hear that being said very much from the opposition benches. It is important for Canadians to understand that.

The number that I thought was quite important is investment in the country. Yes, we want Canadian equity firms and Canadian businesses investing in our country, but we know that in a globalized economy we want other countries and companies around the world to come to Canada and invest in our economic success as well.

A number that is quite striking is foreign direct investment in 2023. Canada was third overall in the entire world. We are 40 million people. We are a relatively small country with respect to population in the world, but of course rich in resources and ingenuity. We are third in the world, not per capita but over all, behind U.S. and Brazil. That is an incredible feat. It is something of which every Canadian, and every member of Parliament in the House, should be proud. It is being driven by this government's view of investing and driving future growth, particularly in a transition to a lower-carbon economy. This is a significant number that Canadians should understand.

However, when we talk about affordability, we have to also balance spending with responsibility. We are in an environment now where we saw the Bank of Canada, through the governor, Tiff Macklem, hold interest rates at 5%. His indication to the Canadians, to the public, and to this government is that we will expect to see decreases in the benchmark interest rate over the next couple of months. That is extremely important.

I am proud of the way in which this government has walked a very careful line between putting out supports to vulnerable Canadians, but at the same time being mindful that we do not want the spending that does take place to further drive inflation. The Bank of Canada has been very clear that this has not happened to date, and it is important that this government continue to do this. I for one, and I know my colleagues in all corners of this place, will be focused on that question as well.

With respect to housing, I want to tell a story. I represent Kings—Hants, a rural riding in Nova Scotia, just outside Halifax in the beautiful Annapolis Valley. Come see us sometime. Indeed, that invitation is to all Canadians. I remember knocking on doors during the 2019 election, as a new candidate. I would go to rural areas of my riding, where there would be a for sale sign on a property. I would go in and talk to the homeowner, and I would note, of course, that they were trying to sell their house. They would say they were concerned they would never be able to sell their house. They had had it on the market for two years and were worried they would never be able to get the equity to be able to retire or move on with their life.

If one were to come to my riding right now, there is little to no real estate available whatsoever. I want people to understand that, in fact, in Nova Scotia, that is a good thing because for years, we were concerned about our demographic trends. In fact, for my generation, as someone who is 33 years old, when I was coming out of university, there were a lot of folks who were actually moving elsewhere in the country. We have reversed that trend in Atlantic Canada. That is a good thing.

Economic growth and population growth are good things, but we need to have the housing to keep pace. We have heard commentary in this place about past iterations of federal governments, both Liberal and Conservative, that have not invested in housing, particularly social housing. I am pleased to say that this is something that has changed under the current government. The philosophy is to invest in public housing, along with market housing, which that the hon. member for Elmwood—Transcona mentioned. Both have to happen at the same time. I would point Canadians to the fact of our most recent investment, which is removing the HST on purpose-based rental housing.

Again, owning one's own home is extremely important, and we will want all Canadians to have that opportunity. However, some people are in a situation where affordable rentals are also extremely important. I have seen the cost of rentals go up, in the community of Kentville, for example, from being in the range of $1,200 a few years ago to now upwards of $2,000, because of the pressure we have seen.

All three levels of government have to be part of this.

[Kristina Michaud, Bloc, Avignon—La Mitis—Matane—Matapédia, QC]

Madam Speaker, I will be sharing my time with the member for Terrebonne.

Before I begin, I want to wish you, Madam Speaker, and all my colleagues, a happy new year. This is the first opportunity we have had to do so. I also wish a happy new year to everyone in Avignon—La Mitis—Matane—Matapédia.

I would like to mention that today I am wearing a small green square, like many other members, because January 29 is the National Day of Remembrance of the Quebec City Mosque Attack and Action Against Islamophobia. This small gesture is made in support of the families and loved ones of the victims of the Quebec City mosque attack.

We are here to debate Bill C‑59, which seeks to implement the budget. This bill can be described as an omnibus bill. It is a bit of a hodgepodge. There is a tremendous amount of items in there that affect many different topics. Today, I will be talking about the environment, housing, pregnancy, vaping, business transfers, psychotherapy and tax havens. Why will I be focusing on all these topics? It is because Bill C‑59 addresses them all and many more, but these are the ones that interest me the most.

When I was in my riding over the holidays, I kept hearing the same thing when I met with constituents. Based on what I was told, people sometimes get the impression that they have no idea what we do in Ottawa or what measures we are working on. When they listen to the radio and watch television, they hear slogans from the different parties geared to the next election. The election is not due for another year and a half. In the meantime, we have work to do as parliamentarians, as elected members. That is what people elected us for.

There are bills that are currently before Parliament, including this economic statement. I think that we need to analyze them. Even though it may be a rather tedious job, we need to analyze everything in the bill and determine what is good and what is not so good. Obviously, as with any omnibus bill, there are some things that are good and some that are less good, and we need to strike a balance between the two.

Unfortunately, there are two key measures in Bill C‑59 that make it impossible for the Bloc Québécois to support it. Because of those two measures, we cannot vote in favour of the bill, despite the fact that, as I was saying, it does contain some good and important measures, although some of them could use a bit of tweaking. Quite simply, voting in favour of the bill would fly in the face of our party's values and those of Quebeckers. I am talking about our environmental values and the importance that we place on protecting the jurisdictions of the provinces and Quebec. What poses a problem for us is the measures that the government describes as environmental, which I would say are more pseudo-environmental, and one of the housing measures.

I want to start with these two measures. First, the government is offering a total of $30.3 billion in subsidies, in the form of tax credits, primarily to oil companies. This means that taxpayers will be paying oil companies to try and pollute less. That is essentially my understanding of the tax credits that are being offered.

As for the second measure I was talking about, the government is going to create a federal department of municipal affairs. A similar department already exists in Quebec and the provinces, and it manages municipal affairs. The federal government has decided to legislate in this area and create a department of housing, infrastructure and communities. This means more interference, more disputes and more delays. Why is it taking so long for Quebec and the federal government to agree on certain projects? It is because the federal government wants to impose conditions, and that delays the process. I fail to see how creating another department will help facilitate that process.

Let us begin with the much-discussed tax credits for oil companies. Quite frankly, they do not need any handouts. According to the Centre for Future Work, the oil and gas extraction sector has raked in record profits in recent years, to the tune of roughly $38 billion over three years. Everyone heard me correctly. I said the government wanted to add another $30 billion to that $38 billion, as though they needed it. When I look at those astronomical amounts, I think about all the other areas where the federal government could invest money, for example to help people cope with the rising cost of living.

It is being reported that roughly 70% of shareholders in the oil and gas sector are foreign. In other words, that money is going to leave the country. In the last two budgets, the government announced its plans to introduce no fewer than six tax credits largely for oil companies. According to information and figures provided by the Department of Finance, these investments will total a whopping $83 billion by 2035.

People talk about the climate crisis and say that we need to do more to fight it. This government's solution is to give the oil companies more money to create more pollution. I have a hard time following that logic.

This bill will amend the Income Tax Act by creating two tax credits. The first is a tax credit for investments in clean technology. We are talking about a $17.8-billion investment in clean technology. That sounds promising and desirable, but on closer inspection, it becomes clear that the tax credit is tailor-made for increased bitumen extraction and gas exports.

The oil sands are essentially tar mixed with soil. Extracting it is energy-intensive. Hot water or steam has to be injected into the ground to liquefy the tar, which then floats on polluted water to be recovered. Oil companies currently use gas to heat this water.

However, the industry would rather export its gas than use it to extract oil. That is timely, since there is a new liquefied natural gas terminal being built on the coast of British Columbia. It is a gateway to Asia. TC Energy has almost completed the Coastal GasLink pipeline and the Shell and LNG Canada liquefied natural gas terminal should be operational in about a year. The only thing left is to make more gas available for export and that is where the clean technology investment tax credit comes in.

Under Bill C‑59 the oil companies would be paid to buy small nuclear reactors. That nuclear energy, which would replace the gas they are currently using, would allow them to extract more bitumen and make more gas available for export, all at taxpayers' expense. I am not going to get into that today, but we have already talked about how small nuclear reactors are not such a good idea, for various reasons.

Yes, the tax credit can be used for other purposes, such as a real transition to renewable energy. Some good examples are in the manufacturing sector, including the use of biomass by paper mills and the development of carbon-neutral aluminum. I think that would be a good way to use this tax credit. However, given the enormity of the investments needed for the oil companies to use nuclear energy to extract more bitumen, we can expect the oil companies to pocket most of the profits.

As for the second tax credit, the one for carbon capture, utilization and storage, we are talking about an investment of $12.5 billion. Since I have only two minutes left, I will unfortunately not have time to talk about the positive aspects. That is too bad, because I really wanted to explain to my constituents all the little measures I mentioned at the beginning. I will therefore continue to talk about the tax credit for carbon capture, utilization and storage, because I find it quite interesting that the government is touting this as an environmental measure when, once again, the government is merely helping the oil companies perhaps pollute a little less. Rather than accelerating the transition to renewable energy, the government would rather help them in that way. Oddly enough, this tax credit is only available to businesses in Saskatchewan, Alberta and British Columbia.

Carbon capture and storage is an experimental technology through which big polluters would recover some of the carbon dioxide that they emit and store it underground, usually in old empty oil wells. That is a key element of the oil companies' and the government's pseudo-environmental strategy, even though the International Energy Agency, which is part of the OECD, believes that countries would be making a serious mistake if they were to make carbon capture the focus of their environmental strategy. The International Energy Agency believes that such technology is smoke and mirrors, that it is as of yet unproven and that, if it were to one day be used on an industrial scale, it would produce only marginal results at an exorbitant cost.

Even knowing all that, the federal government wants to move forward with this technology. Why? To pander to the oil companies, of course. Independent media outlet The Narwhal released a document obtained though the Access to Information Act that shows that Suncor helped to write the government's environmental policy, particularly the section on carbon capture found in Bill C‑59. In December, we learned that the government met with oil and gas lobbies at least 2,000 times between 2022 and 2023.

That shows just how involved the oil companies are in writing the Liberal government's strategies. This will do nothing to help Quebeckers and Canadians fight the climate crisis. That is why we will be voting against this bill.

The House resumed consideration of the motion that Bill C-59, An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023, be read the second time and referred to a committee.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Madam Speaker, I have had the opportunity on at least two separate occasions to listen to the Conservative leader speak at length to Bill C-59. It will come as no surprise to folks in the House and to many Canadians that there are certainly many things about which I disagree with the Conservative leader, and there are some things on which we may find some agreement.

However, one thing that continues to surprise me is that we hear an analysis from the Conservative leader about the hardships Canadians are facing and the problem of inflation, but nowhere is there a mention of the fact that over 25% of the inflation Canadians have been subjected to over the last while, according to some credible economists who have published studies to this effect, has to do with outsized price increases by corporations that are well above the increases in costs they have faced.

The fact is that corporate greed is playing an important role in the inflation Canadians are experiencing, but that is nowhere in the analysis from the corporate-controlled Conservatives. It is not a coincidence, it seems, because by glossing over this incredible contributor to inflation, the Conservatives are doing a solid for their corporate pals.

I would like to hear the Conservative leader talk about the role of corporate greed in inflation and what he would propose to do about it.

The House resumed from December 12, 2023, consideration of the motion that Bill C-59, An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023, be read the second time and referred to a committee.

Bill C-59—Proposal to Apply Standing Order 69.1

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, in fairness, there was a point when I talked about the water agency, and I did go a little off-script. I said that was something that was happening in Winnipeg, which was somewhat spontaneous on my part, to try to liven it up a little. I will stick to my script so I can get right to the point. I am very close to being done.

Clauses 278 to 317 relate to amendments to address anti-money laundering and anti-terrorism, and the threats they pose to the safety of Canadians and the integrity of our financial system. These threats have real costs for the Canadian economy and for Canadians. Not only will these amendments help keep Canadians hard-earned money safe, but also keep our financial system sound. These measures were announced in the 2023 budget and articulated in the budget documents, so they should not be subject to separate votes at the second and third reading stages.

Clauses 318 and 319 would require the publication of information relating to the transfer of payments to the provinces. The federal government provides transfers to the provinces and territories that help deliver the services Canadians rely on, such as child care, which is a key measure to ease Canadians affordability concerns with respect to the care of their young children, and importantly to help deliver the health care that Canadians need when they are at their most vulnerable state.

Clauses 320 to 322 would amend the Public Sector Pension Investment Board Act to ensure that workers are represented in the governance of the public sector pension investments by giving a voice to labour representatives in making investment decision for workers' retirement benefits. These amendments would contribute to stronger investments that would support jobs for middle-class Canadians.

The final clauses referenced by my colleague are clauses 323 to 341, which would clarify the department mandate of Infrastructure Canada to include powers, duties and functions of the department to take a lead role for improving housing outcomes, and to enhance its activities and powers in relation to public infrastructure. These proposed amendments will assist the department in helping to deliver on Canadians' desire and need for housing in a more efficient and effective manner.

In conclusion, I submit that a significant majority of the provisions in Bill C-59 were announced in the 2023 budget and, as such, these measures should not be subject to separate votes at the second and third reading stages. The minority of amendments in Bill C-59 that were announced in the fall economic statement were designed to ease Canadians' concerns about affordability. These provisions, which seek to advance measures that address affordability concerns, represent a common theme and should be grouped as such. as provided for under Standing Order 69.1.

I thank the Speaker and all members for their patience in getting through that.

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

Mr. Speaker, with the patience of the House, I have a point of order. It is in response to the application of Standing Order 69.1 to Bill C-59, better known as the fall economic statement.

I am rising to respond to the point of order raised on December 12, 2023, respecting the application of Standing Order 69.1 to the provisions in Bill C-59 that were announced in the fall economic statement but not referenced in the 2023 budget.

Let me quote the standing order in question, which reads:

(1) In the case where a government bill seeks to repeal, amend or enact more than one act, and where there is not a common element connecting the various provisions or where unrelated matters are linked, the Speaker shall have the power to divide the questions, for the purposes of voting, on the motion for second reading and reference to a committee and the motion for third reading and passage of the bill. The Speaker shall have the power to combine clauses of the bill thematically and to put the aforementioned questions on each of these groups of clauses separately, provided that there will be a single debate at each stage.

(2) The present standing order shall not apply if the bill has as its main purpose the implementation of a budget and contains only provisions that were announced in the budget presentation or in the documents tabled during the budget presentation.

The legal title of the bill reads, “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”. I can confirm to the House that the significant majority of provisions in Bill C-59 would implement measures announced and articulated in the 2023 budget. The fall economic statement was designed to respond to affordability challenges facing Canadians, and these measures reflect a minority of provisions in the bill.

The key to the standing order is the ability for the government to provide a compelling rationale as to why there is a common element or theme that connects the various provisions. In my intervention on that matter last week, I stated that the provisions to implement the legislative measures announced in the fall economic statement were linked to a common theme of affordability for Canadians. This intervention therefore allows me to provide in greater detail how these measures demonstrate a clear link to addressing the affordability concerns of Canadians.

Before I review the measures that were only referenced in the fall economic statement, I would like to point out that many of the measures identified by the member for Regina—Qu'Appelle were referenced in the 2023 budget.

Clauses 1 through 95 relate to proposed amendments to the Income Tax Act that in principle would ensure the robustness of Canada's tax system to provide benefits to Canadians, to create good-quality jobs and to build an economy that works for everyone. There is only one measure in these clauses that was not announced in the budget, that is, the information-sharing provision between departments to facilitate the provision of the government's dental benefit program. I would note that the dental benefit was a budget 2023 measure, and this provision was a technical fix to ensure the smooth operationalization of the benefit. This measure, along with the corresponding technical fix, is clearly a measure to address affordability challenges faced by Canadians who are eligible for the benefit.

Clauses 96 through 128 would establish a digital services tax, which was announced in the 2023 budget and articulated in budget documents. Therefore, it should not be subject to separate votes at the second and third reading stages.

Clauses 129 to 136 relate to proposed amendments to the Excise Tax Act that are designed to ensure that businesses in Canada and Canadians are fairly and properly affected by the excise tax, to enhance Canada's reputation as an investment destination and a great place to do business, and to support Canadians' participation in the labour market. All measures contained in clauses 129 to 136 were announced in the 2023 budget and articulated in budget documents, so they should not be subject to separate votes at the second and third reading stages.

Clauses 136 to 144 also relate to proposed amendments to the Excise Tax Act, which would ensure that businesses in Canada and Canadians are fairly treated by the excise tax. These measures would enhance Canada's reputation as an investment destination, which not only creates excellent job opportunities for Canadians, but also contributes to the revenues to strengthen Canada's social safety net. A significant majority of these measures were announced in the 2023 budget and articulated in the budget documents, so they should not be subject to a separate vote at the second and third reading stages.

There are three measures that were not announced in the 2023 budget, but their purpose is clearly designed to address affordability challenges for Canadians. These include a measure that would exempt psychotherapy from federal tax, which would not only reduce the cost of therapy for Canadians, but also contribute to their well-being so they can productively contribute to the labour market. The second measure involves provisions to ensure that co-operative housing units are eligible for the 100% GST rebate on purpose-built housing, which is a real and significant investment to help build homes for Canadians and address affordability challenges for Canadians to find a place to call home.

Clauses 145 to 167 concern the taxation of vaping products and cannabis products in Canada. These revenues provide investments for Canada to strengthen our social supports, and provide a price signal to Canadians of the health effects of the abuse of these products, while also providing for a fair and stable taxation of vaping and cannabis products.

Clauses 168 to 196 would amend the laws governing financial institutions, which are designed to strengthen the governance of Canadian financial institutions. They are important to keeping Canadians' money and investments, as well as our financial institutions, safe and secure. All of these measures were announced in the 2023 budget and articulated in the budget documents, so they should not be subject to separate votes at the second and third reading stages.

Clauses 197 to 208 relate to proposed leave entitlements related to pregnancy loss and bereavement leave, which are designed to support workers. Canadian workers are the backbone of the economy, and anyone who faces the tragedy of pregnancy loss deserves rightful access to bereavement leave. Ultimately, this measure would ensure that Canadians who are dealing with this tragedy are not also burdened by the loss of income. Again, all of these measures were announced in the 2023 budget and articulated in the budget documents, so they should not be subject to separate votes at the second and third reading stages.

Clauses 209 to 216 relate to the establishment of a Canada water agency, which would create good jobs for Canadians and protect Canadians' access to fresh, clean water. It would also restore, protect and manage bodies of water of national significance. Canadians should be able to count on access to clean water. In an era of increasing climate disruption, an independent Canadian water agency, which would be located in Winnipeg, would help to protect our bodies of water. This measure was announced in the 2023 budget and articulated in the budget documents, so should not be subject to a separate vote at the second and third reading stages.

Clauses 217 and 218 relate to the proposed amendments to the Tobacco and Vaping Products Act, which would provide the government with the authority to develop and implement tobacco and vaping cost recovery frameworks. It would also limit the cost burden on taxpayers for the funding of federal tobacco and vaping activities. In essence, these measures would ensure that Canadians are not on the hook for paying for the development or regulatory frameworks related to vaping, which would not only free up funds that could otherwise be spent on the investments and supports Canadians rely on, but also provide Canadians who use such products with additional disposable income to spend on the essentials of life.

Clauses 219 to 230 propose amendments to the Canadian Payments Act to make the Canadian banking system safer and more secure while delivering more innovative services for Canadians. The purpose of these amendments is to ensure that Canadians hard-earned money is safe in the financial institutions they rely upon.

Clauses 231 to 272 would amend the Competition Act to help increase competition, most notably in the grocery sector where Canadians have experienced rising prices that have impacted their ability to feed their families with healthy and nutritious foods. These amendments are designed to make life more affordable for Canadians by lowering prices and providing more choice, which in turn stimulates competition to compete on pricing and encourage the development of more innovative products and services for Canadians.

Clauses 273 to 277 would exempt post-secondary education institutions from the laws governing bankruptcy and insolvency. By educating our young people and conducting world-leading research, post-secondary educational institutions play a critical role in Canada's social, scientific, and economic development. These amendments would help protect the solvency of Canadian post-secondary institutions.

Clauses 278 to 317 relate to amendments to address—

[Matthew Hatfield]

Certainly. My apologies.

To me, this hearing's topic seems to be pinning down what's wrong with tech platforms and what our government can do about it. I'll try to answer that question very precisely for you.

What's wrong with tech platforms and their influence on society? It's three things: their size, their vast asymmetrical data compared to regulators and citizens, and the engagement algorithms that drive their business model.

Let's talk size. Platforms like Amazon and Google have a stranglehold on a huge share of Internet commerce, app purchases, advertising and more. They often use that power to set unfair terms vis-à-vis smaller businesses and consumers. I'll note, though, that Bill C-18 misunderstood the specific dynamic around news. It assumes that news has inherent value to platforms that, for Meta at least, it does not.

The good news about the size problem is that Canada is opening new possibilities to do something about it through competition reform in Bill C-56 and Bill C-59. In the U.S., several bills were proposed last year aimed at regulating how tech giants treat small businesses and consumers. They include the American innovation and choice online act and the open app markets act, both of which OpenMedia campaigned for. In Canada, the Competition Bureau has never had the legal basis to study platform power effectively, let alone change it. Soon they will.

My second point is about data asymmetry and privacy. Platforms like Meta and YouTube have an endless volume of sensitive data about each and every one of us. They use it for advertising and to feed recommendations, but not for much else. Partly that's to respect our privacy, which is a very good thing. Their data in the hands of a spy agency or law enforcement would be a dystopic surveillance nightmare and one that we must guard against. However, that lack of curiosity on the platforms' part is also self-serving. It makes it easy to bury accurate study of what may be going wrong for some of their users and, in the worst case, lead that minority to harm themselves or others. The limited research that exists on how platform models may sometimes amplify harms is done with very incomplete data or with crumbs of researcher data access, which platforms are quick to withdraw if their interests are threatened.

Here we need both an individual and structural remedy. The strongest possible privacy bill, Bill C-27, giving Canadians meaningful and unalienable control of our personal data, is one solution, but another must be a very strong provision for both regulator and approved academic researcher access to perform studies on platform data in our upcoming online harms bill. We can't intelligently regulate platforms if we don't understand how any harms they help produce actually occur.

Last but not least, let's talk about the algorithm. Without even noticing it, we've become a society in which most information we get is delivered because it keeps us scrolling and clicking, not because it is nuanced, well researched or true. For music or hobbies, that can be a wonderful tool of self-exploration. People are not passive consumers of our feed. We curate it heavily, pruning the algorithm to serve us what we like most. However, for facts and reporting, that same process is making us a less-informed, angrier and more polarized society. We all feel the impact and very few of us like it. That doesn't make solutions easy, although I would say that Bill C-292, Peter Julian's bill, is something worth considering here.

I'll give a couple of signposts for what might help. We welcome this committee's interest in a dedicated study of how to create a viable news sector in Canada that continues producing vetted information. There's a case that Canadian news needs permanent government support, but the more involved government becomes, the more urgent it is that funds move through a system that is fully transparent to the public, has clear and fair criteria for who gets what support and prioritizes funds where they're most needed, in local news deserts and public accountability journalism, not shovelling funds indifferently toward Bell or the CBC. The alternative of stacking complex funding band-aids one on top of the other until they represent the majority of news funding is not going to build public trust in truthful journalism.

We would also welcome a Canadian study of how social media algorithms are impacting society. However, regulating the algorithm, if it comes, must be aimed at expanding transparency and personal control over how it works for Canadian Internet users, not manipulating it for what the government thinks is best for us.