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.

Reference to Standing Committee on Procedure and House Affairs

[Francis Scarpaleggia, Liberal, Lac-Saint-Louis, QC]

Mr. Speaker, I recently had a chance to substitute onto the Standing Committee on Indigenous and Northern Affairs for the study of Bill C-61 and I appreciated sitting with the hon. member, whose interventions were quite thoughtful. In his speech, he mentioned the need to improve the competitive environment, to improve competition. That is exactly what the government did through Bill C-59. Those changes were, in many ways, aimed at increasing competition in the grocery sector.

I would like to know what the member thinks of those changes in Bill C-59. If he liked them, why did he and his party vote against it?

[Jean Simard]

Thank you for your question.

I'll correct you at the outset, because we can't say that aluminum is green in Canada. As per Bill C‑59, which was passed this summer, such a statement is equivalent to greenwashing. That's why we use the wording “low-carbon footprint aluminum”. That's the wording I'm going to use for the purpose of our discussion.

Since carbon pricing systems were implemented in Quebec in 2012, our industry has adopted an approach to reduce its greenhouse gas emissions as quickly as possible.

Accordingly, we have signed two voluntary reduction agreements, one of which is with the Government of Quebec. We have surpassed the commitments set out in both agreements. We chalked up more reductions than we had anticipated. Right now, that makes us the Canadian industrial sector that has contributed the most to reducing greenhouse gas emissions in Canada.

We emit approximately two equivalent tonnes of CO2 per tonne of aluminum produced, while a comparable coal smelter in India or China emits between 17 and 21 tonnes of CO2 per tonne of aluminum. Today, based on that average, we emit one of the lowest levels of emissions compared to the rest of the world's production.

When we look at the reductions planned over the next few decades, everyone has the same objective, which is to achieve net zero by 2050, as in the industrial sector. The global average, which takes into account emissions related to hydroelectricity, natural gas and coal, is much higher at around nine tonnes.

Canada's average is two tonnes, which is where the rest of the world wants to be around 2045. So we're well ahead of the game. The challenge we face is that to further reduce our emissions, we will have to change the way we produce aluminum.

[Anthony Durocher]

Bill C‑59received royal assent in June, I believe, and almost all the changes were implemented, save a few provisions that will come into effect one year later. It's similar to Bill C‑56, which obtained royal assent in December 2023 and, if I'm not mistaken, some changes will come into effect one year later, so in December 2024.

Oil and Gas Industry

[Mike Morrice, Green, Kitchener Centre, ON]

Madam Speaker, I am back tonight to continue calling on the Liberal government to get serious about the climate crisis, specifically with respect to investing in public transit, which it could do by taxing the excess profits being made by the oil and gas industry.

This is particularly timely because this very specific call could be included in the government's fall economic statement, whenever that comes out over the coming weeks. It is one of the reasons why this is one of six calls I have been making to the Minister of Finance over the last number of weeks. The stakes, in my view, really could not be higher when it comes to the climate crisis that we are in.

First of all, we need to recognize that we are the only G7 country whose emissions have gone up since 1990. This is at a time when we have already reached about 1.3°C of warming compared to pre-industrial times.

Back at the 2015 Paris climate conference, world leaders all agreed we would do everything possible to limit the increase to 1.5°C. They did this because climate scientists have told us, if we cross that threshold, it will lead to “leading to devastating and potentially irreversible consequences for several vital Earth systems that sustain a hospitable planet.”

What are we on track for? As of now, current pledges by countries around the world put us somewhere between 2.6°C and 3.1°C in global average temperature rise. We must do so much more as a country to do our fair share, to lead and to demonstrate what is possible when it comes to acting on the climate crisis.

At the same time, when it comes to proven climate solutions, such as public transit, there will be no new funding until 2026. That is after the next election. There is funding available, but operations, like a mechanic who needs to fix a bus, is not eligible. The funding being provided is pretty much the status quo.

However, at the same time, for proven climate distractions, such as carbon capture and storage, we are rolling out the red carpet. The government is giving another tax credit in Bill C-59, which is between $7 billion to $16 billion, and most of the Canada growth fund, so there is $15 billion there. If someone wants to expand the pipeline, there is $34 billion for them to do that.

Meanwhile, the oil and gas industry is making out like bandits. In 2022 alone, the five biggest oil and gas companies operating in this country made $38 billion, and that is after the $29 billion in dividends and share repurchases. They are doing it by gouging Canadians at the pumps to the tune of 18¢ a litre.

The solution should be pretty obvious. Number one, stop the subsidies. Number two, tax these excess profits by taking the Canada recovery dividend that was applied to banks and life insurance companies in the pandemic and apply it to oil and gas. Even for just 15% of profits over a billion, that would generate $4.2 billion a year, all of which could be put into proven solutions, such as public transit. They could add more funds, start the fund sooner or direct it towards operating funds. My question to the hon. parliamentary secretary is this: Will they do it?

Credit Unions

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

Mr. Speaker, since 2015, I have had the privilege of working closely with the Canadian Credit Union Association and its members, including IC Savings and Meridian Credit Union, which have locations in Vaughan. Credit unions are a cornerstone of Canada's economy. These 100% Canadian-owned institutions contribute $8 billion annually and employ over 60,000 hard-working Canadians.

Today I rise to welcome over 40 credit union leaders to Parliament Hill for their annual advocacy day. Serving more than 11 million Canadians, credit unions are transforming communities, making home ownership attainable, empowering small businesses and making life more affordable for Canadians.

Through Bill C-59, we are supporting credit unions by modernizing the Income Tax Act, saving them hundreds of millions of dollars in future tax liabilities. We are also expanding membership eligibility in Payments Canada to better integrate credit union locals.

United by their values, credit unions are driving economic growth and empowering Canadians. I thank Canada's credit unions.

[Gayle McLaughlin, Senior Manager, Government and Industry Relations, Canadian Canola Growers Association]

Thanks, Dave.

In regard to trade, the 2026 review of CUSMA looms large for our farmers. The U.S. is our largest export market, and Mexico is our third-largest export market, with exports valued at $8.6 billion for the former and $1 billion for the latter in 2023.

We have now heard clearly from both U.S. presidential candidates that they view 2026 as a renegotiation, not a review. Given this context and a new administration in Mexico, Canada should be prioritizing this agreement and ensuring that we do nothing domestically to antagonize this critical relationship. CCGA was in Washington, D.C., last week for the 33rd Tri-National Agricultural Accord and heard loudly that Bill C-282 will cause damage to our trading relationships and the CUSMA review, in particular with the U.S.

The CUSMA region will be even more important for our farmers given the significant trade challenges we will face with canola seed going to China, given our government's action on EVs and other imports. We exported five billion dollars' worth of canola to China in 2023.

In regard to Bill C-59, our sector needs clarity around this bill. Canadian farmers are among the most sustainable in the world, and part of our global competitiveness is being able to tell our story to a global audience. The intended and unintended consequences of the greenwashing provisions and the very low threshold for bringing forth a complaint raise serious concerns among farmers.

Finally, regarding business risk management, these tools are important to farmers and provide them with support when they face significant production or income losses. The risk profiles and priorities of today's farmers have changed compared to 20 years ago, when the basic design of these programs began. Closer collaboration with farmers and their associations is needed to ensure that these programs meet the needs of farmers now and into the future.

Thank you.

[Monique Pauzé, Bloc, Repentigny, QC]

So that'll be the case across government.

Bill C-59 concerning the Competition Act was passed in June. Do you think it's strong enough to combat greenwashing?

[Julien Beaulieu]

Good morning and thank you for inviting me here today.

I represent the Québec Environmental Law Centre, or QELC, the only non-profit organization in Quebec that provides independent environmental law expertise.

Today I'm going to discuss the risks associated with greenwashing, specifically the dissemination of false, deceptive and unproven information on environmental characteristics. Greenwashing is a major problem because it prevents investors from making informed decisions; it also slows down the transition and erodes market confidence. Greenwashing can also destabilize the financial system, particularly by causing the premature sale of financial assets.

Greenwashing has unfortunately introduced significant risks into Canada's financial sector. For example, many emerging financial instruments, such as green bonds, sustainability bonds and voluntary carbon credits, are not subject to any minimum content or procedural requirements.

As you are no doubt aware, Bill C‑59, which was adopted this past June, constitutes one step toward combatting greenwashing. Organizations are now required to back up environmental allegations with evidence. In other words, if you say that something is “green”, you must be able to prove it, which is a good thing. However, these measures apply solely to voluntary disclosures regarding environmental benefits. Consequently, they may not be applicable to certain allegations, such as those concerning environmental risks as opposed to impacts.

These measures obviously require no disclosure of information to investors and impose no common language on how to communicate that information. Lastly, although organizations are required under the act to provide evidence in support of their allegations, that evidence need not be disclosed to the public, which complicates the task of identifying greenwashing cases.

A few days ago, the government announced two measures that could help improve the situation. First, it stated that it would require large federally regulated businesses to publicly disclose information concerning climate change, which could well include a certain form of disclosure of GHG emissions by those businesses.

This is a positive measure, but, to ensure that it's effective, it must concern the disclosure of both environmental risks and impacts. Citizens, consumers and investors want to know the environmental impacts of businesses' activities and want that information to be disclosed in a clear and standardized format. General disclosure rules that enable businesses to omit or conceal unfavourable information must absolutely be avoided. Disclosures must also go beyond climate issues and include, for example, biodiversity, pollution, natural resource extraction and so on.

The second measure that the government announced a few days ago is that an independent consulting group will be created and will be responsible for developing a financial taxonomy. That taxonomy, which won't be made public for a year, will establish a classification system and official criteria for projects characterized as “green” or “transitional”. That measure has considerable potential as well. However, for this taxonomy to meet its objectives, three elements, some of which have already been mentioned by my colleagues, will be essential: first, it must include credible, science-based criteria that would prevent the greenlighting of environmentally harmful projects; second, it must be mandatory that it prevent the emergence of weaker rival taxonomies—to date, only one voluntary taxonomy has been announced, which I don't think is enough; third, it must have a governance structure that guarantees that its criteria remain resistant to future political pressure.

Once the taxonomy has been adopted, and taking for granted that it's a proper taxonomy, it will quickly have to be incorporated in the regulatory ecosystem, by requiring, for example, that organizations disclose their degree of alignment, standardize the labelling of financial products, require Crown corporations to establish objectives based on the taxonomy, and so on.

To supplement those two measures, we suggest that the disclosure requirements of federal financial institutions be made more binding, more specific and more comprehensive, in particular, by converting current prudential obligations to regulatory obligations and by compelling disclosure of climate impacts, not solely of risks, but also of information on other environmental aspects such as biodiversity.

Lastly—and we can discuss this further during the meeting—we recommend that the sustainable finance activities of the Financial Consumer Agency of Canada be expanded and that the distribution and use of voluntary carbon credits, those credits that some of us use to offset the impact of our air travel, for example, be regulated. We believe that this field should also be regulated.

I'll stop there. Thank you.

[Jon McKenzie]

Again, I take a bit of issue with the way you phrased your question in that what we've taken out of the report are pieces that we're waiting for clarification on under Bill C-59, and in particular, what that bill means by recognized international standards.

Once we have some guidance from the committee, we will be making an assessment as to whether we can start to re-release that information.

[Jon McKenzie]

Thank you for the question.

First, I would say that nothing has changed at Cenovus in terms of the work we're doing with regard to carbon emissions and our commitment to the environment. What has changed, however, is Bill C-59. Bill C-59 was a piece of legislation that came in without consultation and without an introductory period that requires all environmental representation—

[Mark Walker]

That's quite the question.

There are already provisions within the Competition Act addressing components of what you just noted. Beyond the general redundancies that exist with the passage of Bill C-59, I would simply reiterate our existing concerns in addition to its redundancies.

However, when it comes to the U.S., of course there are regulations regarding claims there that must be appropriately measured. We do see a number of countries globally regulating front-of-package labelling and different claims that are made, and those are benchmarked to international standards.

Again, it's not that anyone at this committee is concerned about the attestation or verifiability. It's simply the lack of clarity within the proposed legislation and within past legislation. We're simply requesting that clarity.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Thank you. So it is possible.

My other question is about Bill C‑59, and it's for the representatives of the three organizations.

You've all raised concerns about the bill. I haven't analyzed your concerns in detail, but, as I understand it, it's a matter of avoiding greenwashing, if I may put it that way, that is to say preventing unsubstantiated claims.

I, for one, have confidence in you. I think you will be able to prove your claims about your products. Why shy away from talking about the improved environmental stewardship of your products, when those claims are based on facts and you spend your time talking about the importance of relying on science?

Please be brief in your answers, as I only have 40 seconds left.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Just very quickly, you did talk about Bill C-59 and unintended consequences.

I know the Competition Bureau is trying to sort out some kind of an interpretation guideline. We will ultimately want to make a recommendation.

How is that going? Is there anything our committee can recommend to further that process for you?

[Jennifer Babcock]

I will just quickly add that we also submitted on that. We are very concerned about ensuring that we keep our science-based standards in Canada and that we do not follow trends that may be political in other countries. With Bill C-59, that was one concern of ours and knowing what the international standards are that we have to follow within this. We've put in our consultation, and there are a lot of lawyers who are now involved in this, as a lot of folks are concerned.

[John Barlow, Conservative, Foothills, AB]

Mr. Petelle or Ms. Babcock, do you want to answer at all on the impacts that Bill C-59 is having?