Bill C-69

Budget Implementation Act, 2024, No. 1

An Act to implement certain provisions of the budget tabled in Parliament on April 16, 2024

Part 1 implements certain measures in respect of the Income Tax Act and the Income Tax Regulations by
(a) denying income tax deductions for expenses incurred with respect to non-compliant short-term rentals;
(b) exempting from taxation the international shipping income of certain Canadian resident companies;
(c) exempting from taxation any income of the trusts established under the First Nations Child and Family Services, Jordan’s Principle, and Trout Class Settlement Agreement;
(d) doubling the volunteer firefighters and search and rescue volunteers tax credits;
(e) extending the eligibility for the Canada child benefit in respect of a child for six months after the child’s death;
(f) increasing the cap on labour expenditures per eligible newsroom employee from $55,000 to $85,000 and increasing, for four years, the Canadian journalism labour tax credit rate from 25% to 35%;
(g) extending eligibility for the mineral exploration tax credit by one year;
(h) providing a refundable tax credit to small and medium-sized businesses in designated provinces by returning a portion of fuel charge proceeds from the province;
(i) providing a refundable investment tax credit to qualifying businesses for investments in certain clean hydrogen projects;
(j) providing a refundable investment tax credit to qualifying businesses for certain investments in clean technology manufacturing property;
(k) amending the definition “government assistance” to exclude bona fide concessional loans with reasonable repayment terms from public authorities;
(l) implementing a number of amendments to the alternative minimum tax;
(m) increasing the home buyers’ plan withdrawal limit from $35,000 to $60,000 and deferring the repayment period by three additional years;
(n) excluding the failure to report under the mandatory disclosure rules from the application of the section 238 penalty;
(o) introducing a $10-million capital gains exemption on the sale of a business to an employee ownership trust; and
(p) implementing a number of technical amendments to correct inconsistencies and to better align the law with its intended policy objectives.
Part 2 enacts the Global Minimum Tax Act , a regime based on the rules of the Organisation for Economic Co-operation and Development (OECD). The global minimum tax regime will ensure that large multinational corporations are subject to a minimum effective tax rate of 15% on their profits wherever they do business. 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 amends the Excise Tax Act , the Excise Act , the Excise Act, 2001 , the Underused Housing Tax Act , the Greenhouse Gas Pollution Pricing Act and other related texts in order to implement certain measures.
Division 1 of Part 3 amends the Excise Tax Act by repealing the temporary relief for supplies of certain face masks or respirators and certain face shields from the Goods and Services Tax/Harmonized Sales Tax.
Division 2 of Part 3 amends the Excise Act , the Excise Act, 2001 and other related texts in order to implement changes to
(a) the federal excise duty framework for tobacco products by
(i) increasing the excise duty rates for tobacco products, including imposing a tax on inventories of cigarettes held by retailers and wholesalers,
(ii) changing the process by which brands of tobacco products for export are exempted from special excise duty and marking requirements,
(iii) allowing certain information to be shared for the administration or enforcement of the Tobacco and Vaping Products Act , and
(iv) requiring the filing of information returns in respect of tobacco excise stamps;
(b) the federal excise duty framework for vaping products by increasing the excise duty rates for vaping products; and
(c) the federal excise duty framework for alcohol by
(i) extending by two years the two per cent cap on the inflation adjustment on beer, spirits and wine excise duties, and
(ii) cutting by half for two years the excise duty rate on the first 15,000 hectolitres of beer brewed in Canada.
Division 3 of Part 3 amends the Underused Housing Tax Act and the Underused Housing Tax Regulations by, among other things,
(a) eliminating filing requirements for certain owners;
(b) reducing minimum penalties for failing to file a return; and
(c) introducing a new exemption for residential properties held as a place of residence or lodging for employees.
Division 4 of Part 3 amends the Greenhouse Gas Pollution Pricing Act by providing authority, in certain circumstances, for the sharing of certain information amongst federal officials and for the public disclosure of certain information by the Minister of National Revenue.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends the Budget Implementation Act, 2022, No. 1 to delay the repeal of the Prohibition on the Purchase of Residential Property by Non-Canadians Act for two years.
Division 2 of Part 4 amends the National Housing Act to increase the in-force limits for guarantees issued by the Canada Mortgage and Housing Corporation (CMHC) in respect of mortgage-backed securities and Canada Mortgage Bonds and for mortgage default insurance provided by CMHC from the temporary $750 billion to the permanent $800 billion. It also amends the Borrowing Authority Act to avoid the double counting of liabilities related to Canada Mortgage Bonds that are guaranteed by the CMHC and have been purchased by the Minister of Finance, on behalf of the Government of Canada, in the calculation of the maximum amount of certain borrowings under that Act.
Division 3 of Part 4 authorizes the making of payments to the provinces for the fiscal year beginning on April 1, 2024 respecting a national program for providing food in schools.
Division 4 of Part 4 amends the Canada Student Loans Act and the Canada Student Financial Assistance Act to expand eligibility for student loan forgiveness to early childhood educators, dentists, dental hygienists, pharmacists, midwives, teachers, social workers, psychologists, personal support workers and physiotherapists.
Division 5 of Part 4 amends the Canada Education Savings Act to, among other things,
(a) authorize the Minister responsible for that Act to open a registered education savings plan in respect of a child born after 2023 who is eligible for the payment of the Canada Learning Bond and is not the beneficiary under such a plan, so that the Minister may pay a Canada Learning Bond in respect of the child; and
(b) increase, from 20 to 30 years, the maximum age of a beneficiary under a registered education savings plan in respect of whom a Canada Learning Bond may be paid on application.
It also makes consequential amendments to the Income Tax Act .
Division 6 of Part 4 amends the Bretton Woods and Related Agreements Act to increase the maximum financial assistance that may be provided in respect of foreign states.
Division 7 of Part 4 amends the Bretton Woods and Related Agreements Act to increase the amount of the payment that the Minister of Finance may provide to the International Monetary Fund in respect of Canada’s subscriptions. It also amends the International Development (Financial Institutions) Assistance Act and the European Bank for Reconstruction and Development Agreement Act to provide for new financial instruments that the Minister of Foreign Affairs or the Minister of Finance, as the case may be, may use to provide financial assistance to the institutions referred to in those Acts.
Division 8 of Part 4 amends the International Financial Assistance Act to, among other things, provide that foreign exchange losses in relation to programs referred to in that Act must be charged to the Consolidated Revenue Fund and provide for the making of payments to Development Finance Institute Canada (DFIC) Inc. in relation to programs referred to in that Act out of the Consolidated Revenue Fund.
Division 9 of Part 4 amends the Export Development Act to lower the limit for total liabilities and obligations referred to in subsection 24(1) of that Act from $115 billion to $100 billion.
Division 10 of Part 4 amends the Financial Administration Act to broaden the application of subsection 85(2) of that Act to other Crown corporations.
Division 11 of Part 4 amends the Financial Administration Act to require certain banks and other financial institutions to disclose prescribed information for federal payments accepted for deposit.
Division 12 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act to enhance the Canada Health Transfer for qualifying provinces and territories.
Division 13 of Part 4 amends the Pension Benefits Standards Act, 1985 to require that the Superintendent of Financial Institutions publish certain information relating to pension plan investments. It also amends the Pooled Registered Pension Plans Act to require that plan administrators provide specified information by written notice to certain persons when they become members of a pooled registered pension plan.
Division 14 of Part 4 amends the Canada Pension Plan to, among other things,
(a) provide for a death benefit of $5,000 in cases where no other Canada Pension Plan benefit, with the exception of the orphan’s benefit, has been paid in respect of the deceased contributor’s contributions;
(b) create a new child’s benefit for dependent children aged 18 to 24 who are in part-time attendance at school;
(c) maintain eligibility for the disabled contributor’s child’s benefit if the disabled contributor reaches the age of 65;
(d) allow for the deeming of an application for a disabled contributor’s child’s benefit on behalf of a child to have been made at an earlier date under the Canada Pension Plan ’s incapacity provisions;
(e) preclude entitlement to a survivor’s pension if an individual has received a division of unadjusted pensionable earnings in respect of their deceased separated spouse; and
(f) clarify the determination of the payee of the disabled contributor’s child’s benefit.
It also makes a consequential amendment to the Canada Pension Plan Regulations .
Division 15 of Part 4 amends the Public Sector Pension Investment Board Act to provide for the payment of certain amounts into the Consolidated Revenue Fund by the Public Sector Pension Investment Board.
Division 16 of Part 4 enacts the Consumer-Driven Banking Act , which establishes a consumer-driven framework for individuals and small businesses to safely and securely share their data with the participating entities of their choice.
It also makes related amendments to the Financial Consumer Agency of Canada Act to establish the position of Senior Deputy Commissioner for Consumer-Driven Banking who is responsible for consumer-driven banking matters and to provide for, among other things, the supervision of participating entities.
Division 17 of Part 4 amends the Bank Act to, among other things, clarify the definitions “deposit-type instrument” and “principal-protected note”.
Division 18 of Part 4 amends the Office of the Superintendent of Financial Institutions Act to increase to $100,000,000 the maximum amount that expenditures made out of the Consolidated Revenue Fund to defray the expenses arising out of the operations of the Office may exceed the Office’s total assessments and revenues.
Division 19 of Part 4 amends the Bank of Canada Act to clarify that the Bank of Canada may enter into repurchase, reverse repurchase and buy-sellback agreements.
Division 20 of Part 4 amends the Canada Business Corporations Act to
(a) harmonize fines for a corporation guilty of an offence related to the collection or sending of information regarding individuals with significant control; and
(b) set separate fines and imprisonment terms on the basis of a summary conviction or a conviction on indictment for a director, officer or shareholder of a corporation guilty of an offence related to individuals with significant control.
Division 21 of Part 4 amends Parts I to III of the Canada Labour Code to, among other things,
(a) provide that a person who is paid remuneration by an employer is presumed to be their employee unless the contrary is proved by the employer;
(b) provide that if, in any proceeding other than a prosecution, an employer alleges that a person is not their employee, the burden of proof is on the employer; and
(c) prohibit an employer from treating an employee as if they were not their employee.
Finally, it also includes transitional provisions.
Division 22 of Part 4 amends the Canada Labour Code to, among other things, set out certain employer obligations relating to policies respecting work-related communication and clarify certain employee rights and employer obligations relating to terminations of employment. It also includes transitional provisions.
Division 23 of Part 4 amends the Employment Insurance Act to extend, until October 24, 2026, the duration of the measure that increases the maximum number of weeks for which benefits may be paid in a benefit period to certain seasonal workers.
Division 24 of Part 4 amends section 61 of An Act for the Substantive Equality of Canada’s Official Languages in order to add a reference to subsections 18(1.1) and (1.2) of the Use of French in Federally Regulated Private Businesses Act in subsection 19(1) of that Act, which An Act for the Substantive Equality of Canada’s Official Languages enacts.
Division 25 of Part 4 authorizes a corporation that is to be incorporated as a wholly owned subsidiary of the Canada Development Investment Corporation to provide loan guarantees as part of an Indigenous loan guarantee program and authorizes the payment out of the Consolidated Revenue Fund by the Minister of Finance of amounts that are required in respect of those guarantees.
Division 26 of Part 4 authorizes the payment of up to $1.3 million to entities or individuals involved in the government’s engagement in a pilot project for the creation of a Red Dress Alert.
Division 27 of Part 4 provides that the subsidiary of VIA Rail Canada Inc. incorporated with the corporate name VIA HFR - VIA TGF Inc. is, as of the date of its incorporation, an agent of His Majesty in right of Canada and may enter into contracts, agreements and other arrangements with His Majesty as though it were not such an agent.
Division 28 of Part 4 amends the Impact Assessment Act , in response to the majority opinion of the Supreme Court of Canada on the constitutionality of that Act, to, among other things,
(a) align the preamble and purpose provision with the primary objective of that Act, which is to prevent or mitigate significant adverse effects within federal jurisdiction — and significant direct or incidental adverse effects — that may be caused by the carrying out of physical activities;
(b) replace the definition “effects within federal jurisdiction” with “adverse effects within federal jurisdiction” and, in doing so,
(i) restrict the definition to non-negligible adverse changes,
(ii) limit transboundary changes to those involving the pollution of transboundary waters and the marine environment, and
(iii) include, in respect of federal works or undertakings and activities carried out on federal lands, non-negligible adverse changes to the environment or to health, social and economic conditions;
(c) ensure that the impact assessment process applies only to those physical activities that may cause adverse effects within federal jurisdiction or direct or incidental adverse effects;
(d) ensure that, in deciding if an impact assessment of a designated project is required, one factor that the Impact Assessment Agency of Canada must take into account is whether another means exists that would permit a jurisdiction to address those effects;
(e) amend the final decision-making provisions to provide for an initial determination as to whether the adverse effects within federal jurisdiction and the direct or incidental adverse effects are likely to be, to some extent, significant, and then, if so, provide for a determination as to whether those effects are justified in the public interest; and
(f) improve cooperation tools to better harmonize the impact assessment process with the processes for assessing effects that are followed by provincial and Indigenous jurisdictions.
Finally, it also includes transitional provisions.
Division 29 of Part 4 amends the Judges Act to increase the number of salaries authorized for judges of superior courts other than appeal courts. It also reduces in a corresponding manner the number of salaries authorized for judges of provincial unified family courts.
Division 30 of Part 4 amends the Tax Court of Canada Act to provide that, if a party to a proceeding under the general procedure of the Tax Court of Canada is not an individual, that party must be represented by counsel, except under special circumstances.
Division 31 of Part 4 amends the Food and Drugs Act to, among other things, authorize the Minister of Health to
(a) establish rules for the purpose of preventing, managing or controlling the risk of injury to health from the use of therapeutic products, other than the intended use, or the risk of adverse effects on human beings, animals or the environment from the use of a drug intended for an animal;
(b) exempt any food, therapeutic product, person or activity from the application of certain provisions of that Act or its regulations; and
(c) deem, on the basis of decisions of, information or documents produced by, a foreign regulatory authority, that certain requirements of that Act or its regulations are met in respect of a therapeutic product or food.
Finally, it also includes a transitional provision.
Division 32 of Part 4 amends the Tobacco and Vaping Products Act to authorize the provision of customs information to the Minister responsible for that Act for the purpose of the administration and enforcement of that Act and to authorize that Minister to disclose information to other federal ministers for certain purposes.
Division 33 of Part 4 amends the Criminal Code to broaden the criminal interest rate offence to prohibit a person from offering to enter into an agreement or arrangement to receive interest at a criminal rate and from advertising an offer to enter into an agreement or arrangement that provides for the receipt of interest at a criminal rate. It also repeals the provision that requires the consent of the Attorney General prior to commencing proceedings related to the offence.
Division 34 of Part 4 contains measures that are related to money laundering, terrorist financing and sanctions evasion and other measures.
Subdivision A of Division 34 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things,
(a) permit information sharing between reporting entities for the purpose of detecting and deterring money laundering, terrorist financing and sanctions evasion;
(b) authorize, subject to certain conditions, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to disclose certain information to provincial and territorial civil forfeiture offices and to the Department of Citizenship and Immigration;
(c) authorize FINTRAC to publicize additional information pertaining to violations of that Act; and
(d) extend the application of that Act to cheque cashing businesses.
It also makes consequential amendments to the Personal Information Protection and Electronic Documents Act and the Cross-border Currency and Monetary Instruments Reporting Regulations .
Subdivision B of Division 34 amends the Income Tax Act and the Excise Tax Act to allow provincial or superior court judges, a judge of a superior court of criminal jurisdiction or a judge as defined in section 552 of the Criminal Code to grant on application by a Canada Revenue Agency official the authorization to use device or investigative technique, or procedure or otherwise do any thing provided in a warrant, for purposes of tax investigations.
Subdivision C of Division 34 amends the Criminal Code to provide for an order to keep an account open or active and for a production order to require the production of documents or data that are in a person’s possession or control on dates specified in an order that fall within the 60-day period after the day on which it is made.
Division 35 of Part 4 amends the Criminal Code to, among other things,
(a) create new offences in respect of motor vehicle theft, including an offence concerning the possession or the distribution of an electronic device suitable for committing theft of a motor vehicle, and in respect of criminal organizations; and
(b) add, as an aggravating factor, evidence that an offender involved a person under the age of 18 years in the commission of an offence.
It also makes consequential amendments to other Acts.
Division 36 of Part 4 amends the Radiocommunication Act to, among other things, prohibit the manufacture, import, distribution, lease, offer for sale, sale or possession of certain devices specified by the Minister of Industry. It also amends that Act to establish as an offence or a violation the contravention of that prohibition.
Division 37 of Part 4 amends the Telecommunications Act to, among other things, require telecommunications service providers to provide their subscribers with a self-service mechanism that allows them to cancel their contract for telecommunications services or modify their telecommunications service plan and to inform those subscribers before the expiry of their fixed-term contract, as well as in other specified circumstances, of other service plans that those providers offer. It also amends that Act to prohibit the charging of certain fees.
Division 38 of Part 4 amends the Corrections and Conditional Release Act to, among other things,
(a) provide that the Correctional Service of Canada is responsible for implementing any arrangement — approved by the Minister of Public Safety and Emergency Preparedness — entered into by the Commissioner of Corrections and the Canada Border Services Agency with respect to the support that the Service may provide to the Agency to assist in the exercise of certain powers or the performance of certain duties and functions;
(b) control the access of the inmates of a penitentiary to a designated immigrant station adjacent to the penitentiary and the access of the immigration detainees of a designated immigrant station to a penitentiary adjacent to the station; and
(c) provide that, in exigent circumstances, staff members of the Service may provide additional support to detention enforcement officers of the Agency to assist them in the exercise of certain powers or the performance of certain duties and functions.
It also amends the Immigration and Refugee Protection Act to define the term “immigrant station”, to provide that an area of a penitentiary may be an immigrant station only if it is designated under the Corrections and Conditional Release Act and to set out the circumstances under which a person detained under that Act may be detained in a designated immigrant station.
Finally, it provides for the repeal of those amendments on a specified date and includes a transitional provision.
Division 39 of Part 4 contains measures related to public debt and the borrowing of money.
Subdivision A of Division 39 amends the Financial Administration Act to clarify that certain regulations and directions do not apply to contracts related to the borrowing of money entered into by the Minister of Finance.
Subdivision B of Division 39 amends the Borrowing Authority Act to increase the maximum amount of certain borrowings.
Division 40 of Part 4 amends the Trust and Loan Companies Act , the Bank Act and the Insurance Companies Act to require certain financial institutions to make available information respecting diversity among directors and members of senior management.
Division 41 of Part 4 amends the Trust and Loan Companies Act , the Bank Act and the Insurance Companies Act to extend the period during which federal financial institutions governed by those Acts may carry on business.
Division 42 of Part 4 amends the Federal Courts Act to provide that the Federal Court has jurisdiction to hear applications for judicial review of decisions of the Social Security Tribunal on the extension of time to make a request for review or reconsideration under the Canada Disability Benefit Act . It also amends the Tax Court of Canada Act and the Department of Employment and Social Development Act to, among other things, provide the Tribunal with jurisdiction to hear appeals of decisions made under the Canada Disability Benefit Act and require that matters related to income raised in those appeals be referred to the Tax Court of Canada.
Division 43 of Part 4 amends the Controlled Drugs and Substances Act to repeal provisions related to the ministerial power to exempt supervised consumption sites from the application of that Act. It also amends that Act to allow for the making of regulations respecting authorizations for supervised consumption and drug checking services and includes transitional provisions.

[The Chair, Liberal, Peter Fonseca]

Thank you, MP Davies.

We want to thank our excellent witnesses. Thank you for coming before the finance committee on Bill C-69. We appreciate your testimony and wish you the best with the rest of your day.

Members, we are now suspended as we transition to our next panel.

[Alexander Vronces, Executive Director, Fintechs Canada]

Good afternoon to the chair, vice-chair and members of the Standing Committee on Finance. My name is Alex, and I am the executive director of Fintechs Canada.

Fintechs Canada is an industry association of Canada's most innovative financial technology companies. Our members collectively serve millions of Canadians on a daily basis.

Economic growth has slowed. Life is increasingly unaffordable. Canadian productivity has reached emergency status. At Fintechs Canada, we believe in whole-of-government solutions to problems like these.

One critical part of the solution needs to be boosting competition in banking, because our banking sector is partly to blame for the problem. That means passing the bits and pieces of an open banking framework we're starting to see in Bill C-69 without delay.

More competition in banking will make life more affordable for Canadians. Canada's banking sector is heavily concentrated, with little change over the past decade. Canadians pay higher banking fees than consumers in similar markets, such as the United Kingdom and Australia.

Canada's big banks make more and more of their money from what's called non-interest income—in other words, fees. These include account and investment management fees, payment processing fees and administrative fees on mortgages and other loans.

More competition in banking will also boost Canada's productivity. Canada's economy is mostly made up of small businesses, but Canada's small businesses receive less financing from our banks and pay more for it than their peers in other countries. Weak investment in Canada's small business community is a long-standing issue. How can our economy run at its best when the engine has no fuel to run on?

Consumer-driven banking will help boost competition in banking by putting consumers in control of their financial information. Suppose you're a recent immigrant who can't qualify for a loan because you don't have a Canadian credit history. With open banking, you can reliably and securely share your monthly rent payments with Borrowell's Rent Advantage app to build your credit score.

Maybe you're a small business and you don't want to rely on spreadsheets to manage your books. You can use open banking to reliably and securely share your transaction data with accounting platforms like Xero to automate your bookkeeping.

If you're having trouble tracking investment accounts at different banks, there are apps that let you view and manage them in a single dashboard. However, to share your data securely and reliably, you need open banking.

By empowering Canadians to reliably and securely share their financial information, Canadians will be better able to vote with their wallets. They can decide for themselves who will serve them best. What's more, Canadians can do this without having to decipher who's the most secure and resilient because of the consumer protection that comes with open banking.

As I have written before, open banking isn't really about opening the vault of financial data. That much has already happened. It's actually about closing it again and putting Canadians in charge, letting Canadians decide whom it can be open for, when it can be opened, how long it can be opened and for what purpose.

This is why Canada needs the consumer-driven banking act. It also needs a regulator such as the FCAC, well equipped for the job of policing the industry. The longer we wait, the further and further we will fall behind our G7 counterparts, who have already put their financial sectors to work to make their economies more competitive, affordable and productive.

[Gauri Sreenivasan, Co-Executive Director, Canadian Council for Refugees]

Good afternoon, Chair. Thank you very much for the opportunity to appear.

The Canadian Council for Refugees is Canada's leading national umbrella, representing over 200 frontline organizations working with, from and for refugees and migrants.

We are very grateful to the committee for having given us this opportunity to present our perspectives and recommendations with respect to the budget implementation act.

Federal budget 2024 had important investments to support refugee claimants, but the budget implementation act is now suggesting major new changes to refugee and immigration law that are extremely concerning, without prior consultation. These include changes that will not only undermine international human rights, but also our reputation as a rules-based refugee leader. The CCR objects to the budget implementation act being used in this undemocratic way to bring in potentially sweeping changes to the refugee system.

As you will see in our brief, our overarching recommendation is for you to either delete major sections of the bill or insist on the immigration and refugee aspects being separated out from the legislation to enable full hearings, debate and further parliamentary review of pending regulations, which have yet to be tabled. Lives are at stake.

We have four major concerns. I'm going to cover two regarding changes to the refugee claims process. CCR vice-president Jenny Jeanes will cover the other two aspects related to CBSA and detention.

It's worth remembering, members of Parliament, that Canada has an obligation under international law to provide safe haven to those who arrive at our shores fleeing persecution. The vast majority of those who seek asylum in Canada—almost 80% last year—are found to be refugees. We have a world-class refugee determination system to hear cases at the Immigration and Refugee Board. We need to let it do its job, but Bill C-69 is making major changes.

First, division 38 is creating a worrisome new step in the refugee claim process that creates an indefinite gap before referral to the Immigration and Refugee Board—the IRB—in which claimants could be asked to provide endless information and documents with no timeline for the claim to be referred for their hearing. It will lead to long delays, creating indefinite limbo for claimants and not only threatening fundamental rights but also, ironically, undermining the progress that has been made to date in streamlining processing.

CCR is recommending to the committee to amend clauses 410 and 411 to delete the provisions whereby if a claim “is determined to be eligible, the Minister must consider it further” to enable discretion in that case, and to amend clause 411 so an eligible claim must be referred to the IRB within at least a month of the required information being submitted. These are crucial amendments to secure due process.

Our second concern is that division 38 introduces new provisions that trigger an early opportunity for a claim to be declared abandoned before it has even been referred to the IRB. The measure is likely to lead to claims being unfairly declared abandoned, penalizing people who, through no fault of their of their own, miss a deadline or forget to file a document in a byzantine system that is already providing zero formal support services. Those most at risk are likely to be the most vulnerable.

The provision will also—again, counterintuitively—contribute to a backlog of abandonment hearings at the IRB. It is absurd to ram these measures through now. They need to be rethought.

We are recommending that MPs move to delete clause 412 or at least, in the alternative, change proposed section 102.1 from “the Minister must” to “the Minister may” to allow for situations where claimants are obviously trying to complete requirements but are prevented due to lack of counsel. It's only common sense.

I want to turn it over to CCR's vice-president to continue with our presentation.

[The Chair, Liberal, Peter Fonseca]

I call the meeting back to order.

Welcome back, everybody. This is our third panel of witnesses today, although it is our seventh panel of witnesses on Bill C-69.

With us for this panel, we have the Canadian Council for Refugees. Its vice-president, Jenny Jeanes, is with us. Its co-executive director, Gauri Sreenivasan, is also joining us. From the Canadian Physiotherapy Association, the senior director of advocacy, Kayla Scott, will be joining us. From Fintechs Canada, we have the executive director, Alexander Vronces.

We will first hear from the Canadian Council for Refugees. I understand that Jenny Jeanes and Gauri Sreenivasan will be sharing their time, although I believe Gauri is first.

You may commence. Thank you.

[The Chair, Liberal, Peter Fonseca]

Thank you, MP Davies.

On that, we want to thank our excellent group of witnesses. Thanks for your testimony and the information you have provided to our committee on Bill C-69. We wish you the best for the rest of your day.

At this time, members, we are going to suspend as we transition to our next panel. Thank you.

[Don Davies, NDP, Vancouver Kingsway, BC]

Thank you.

Professor Elgie, I'd like to pick up where I left off. I'm looking for a specific substantive amendment that you would recommend we make to Bill C-69 to correct the issue before us of this retreat, apparently, from federal jurisdiction over cross-border pollution.

[Don Davies, NDP, Vancouver Kingsway, BC]

In your view, how can that problem be addressed before Bill C-69 is passed into law?

[Heidi Yetman, President, Canadian Teachers' Federation]

Thank you very much.

Good morning, everybody. Good morning, Mr. Chair.

Thanks for having the Canadian Teachers' Federation here to speak to Bill C-69 and bring the perspective of teachers in Canada to the study of the legislation.

The federation is an organization that represents over 365,000 K-to-12 public education teachers and education workers in Canada. We proudly represent members in every province and territory.

I'm here to speak to the positive things for education in Bill C-69.

As the cost of living crisis continues to hit Canadians hard, teachers and their families are no different. That's why, when we met the Minister of Finance earlier this year to discuss issues of affordability and cost-saving measures that would benefit teachers and their families, we had three clear asks. These were the creation of a national school food program, federal loan forgiveness for teachers and more resources for mental health.

The pandemic has negatively impacted the mental health of students and young people, and students' academic success is linked to their well-being. This budget has more resources dedicated to addressing mental health concerns within youth communities in Canada. We know that sadly, mental health is becoming a more prevalent cost for families. We called on the federal government to find a way to make sure the government seeks to alleviate barriers to mental health supports, especially for those who find them inaccessible. We are pleased to see that the government pledged $500 million over five years for a new youth mental health fund designed to help younger Canadians access health care.

With student mental health issues on the rise, classrooms are becoming more complex. As a result, working conditions are deteriorating. Consequently, teachers are leaving the profession. In addition, student populations are growing and, unfortunately, fewer people are enrolling in education faculties and universities. This has resulted in a retention and recruitment crisis in education in this country, especially in remote and rural communities.

The federation pointed out a way that the federal government could make entering teaching a more enticing and viable career path by using loan forgiveness. This initiative would mean the loan forgiveness of thousands of dollars for teachers in communities that already have a difficult time recruiting. I cannot state strongly enough how significant an investment this is into public education and into making the lives of teachers and their families more affordable.

Did you know that in 2022, one in four Canadian children were food insecure in Canada? That really is something, if you think about it.

We asked for the creation of a national food program, which is a program that we have long called for and felt was long overdue. After a decade of advocacy, we are thrilled and relieved to hear the announcement of an investment of $1 billion over five years.

This is wonderful news for us and many other organizations that have advocated a food school program for years. Taking pressure off parents and families by providing nutritious meals for school-aged children at school is something that Canada, collectively, should be excited and proud about. This will have a life-changing impact on the lives of children and families living in Canada. Putting food on the lunchroom table at school will improve student physical and mental health, improve their ability to fully participate in their education and improve relationships at school. Research shows that universal food programs provide a 2.5 to 7 times return in human health and economic benefits.

I'm really pleased that Bill C-69 has made investments into each of these three key areas that will have an impact on education. Education is the foundation of a healthy and prosperous society. Spending money on education and youth is not a cost; it's an investment.

Thank you very much.

[The Chair, Liberal, Peter Fonseca]

That is the time. Thank you, MP Davies. I know it goes fast.

We want to thank our witnesses for joining us here in Ottawa. It's a beautiful Friday morning. Thank you for coming before us on Bill C-69. We really appreciate your testimony. We wish you the best for the rest of the day. Thank you very much.

On that, we're suspended, members, as we transition to our second panel.

[Aaron Skelton]

Not particular to Bill C-69, but in a similar vein to an unchecked ministerial power, that's what we're seeing on cost recovery. I'd comment that through our analysis, we've seen that the impact of several of these regulatory and legislative updates is that at a minimum, one in five of these Canadian brands is looking to exit the country. It's going to reduce the number of Canadian-produced and Canadian-regulated products that are available.

The companies that do remain are going to be reducing the assortment of products, because they just won't be financially viable anymore. The selection of products will be reduced for Canadians. The products that remain will have an increased cost burden that will be extremely different from products in other countries. We'll see an increase in cost of those that remain. Therefore, there will be less Canadian compliance, less assortment and increased costs for those that do remain.

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

Thank you, Mr. Chair.

Greetings to my colleagues.

I'd like to thank all the witnesses for coming, and for their testimony.

We can see that there are very serious concerns about three completely different matters. As my speaking time is limited, my questions will be for Mr. Brun of the Desjardins Group.

Thank you for your blunt testimony. You're merely suggesting the removal of division 16 in part 4 of Bill C‑69 to prevent a false start.

To begin with, why do you think it's important to adopt a framework for an open banking system?

[Blaine Calkins, Conservative, Red Deer—Lacombe, AB]

Thank you, Chair.

My question is to the Health Food Association. Thank you for your presentation.

I just want to be clear about one part of your presentation. You said that Health Canada snuck these changes in Bill C-47 and Bill C-69. Actually, when officials from Health Canada appear at Parliament, they sit exactly where you're sitting right now. It would be the health minister advising the finance minister to put these changes into this piece of legislation. Health Canada wouldn't be able to table any legislation at all. It's MPs and ministers and the government that tables these things.

I want to talk a little bit about the health minister's defence of using Bill C-47 and now Bill C-69 and claiming that Health Canada needs powers to stop, I think, a particular example of a product that they're talking about. I want to go through the current set of powers that Health Canada has.

Does Health Canada currently have the power to issue a stop sale on any natural health product in Canada?

[Aaron Skelton, President and Chief Executive Officer, Canadian Health Food Association]

Good morning.

Thank you, Chair and members of this committee, for having me here today. My name is Aaron Skelton. I'm the president and CEO of the Canadian Health Food Association, a trade association representing natural health, organic and wellness products in Canada. I am grateful to have the opportunity to speak before you today on behalf of not just our member companies but also the 82% of Canadians who use natural health products as part of their health and well-being.

The core concern I am bringing to you today is regarding Health Canada’s continued abuse of the parliamentary process. Health Canada introduced significant amendments to the laws governing natural health products through budget omnibus bills in 2023 and 2024 rather than following the parliamentary process. This has undone the hard work of prior legislative reviews conducted by previous Parliaments and the House of Commons Standing Committee on Health.

In budget 2024, current amendments to the Food and Drugs Act, as included under division 31 of Bill C-69, has yet again caught an entire industry completely off guard. For the second time in as many years, Health Canada has attempted to evade proper parliamentary process, including scrutiny by the Standing Committee on Health and consultations with industry, to achieve their desired outcome with zero checks or balances. The amendments they seek as part of division 31 are extremely powerful. However altruistically the intentions behind it are framed, the implications of such broad, sweeping changes demand proper study and regulatory rigour.

As mentioned, this same approach was taken in 2023, when division 27 in part 4 of Bill C-47 shockingly changed the definition of “therapeutic products” to include natural health products—with no scrutiny, public analysis or industry consultation. The lack of transparency and the unintended consequences that came from a blatant disregard of due process resulted in a private member’s bill, Bill C-368, that just this week passed second reading with support from all opposition parties to repeal this amendment. While a step in the right direction to course-correct a sneaky tactic, once an amendment has passed, it is no easy feat to undo what was inappropriately done.

The need for industry and consumers to voice their concerns on important regulatory and legislative matters is paramount, a requirement that is crucial to the development of fair and appropriate regulations. The potential impact of unchecked powers is not a hypothetical one. The current cost recovery proposal for NHPs, the outcome of such ministerial powers, has already created a staggering and untenable situation for companies across our sector.

Today we are back to ask this committee to not let history repeat itself. To be clear, we represent the natural health products industry. We do not represent any smoking cessation or tobacco products. We are here because over the course of the past two years, our trust in Health Canada has been eroded. We have faced multiple regulatory and legislative changes that have serious consequences on an industry and on Canadians.

If Bill C-69 passes and this amendment goes through, health products, natural or otherwise, will be left to face broad, sweeping powers from a minister who will have the ability to issue orders without following the Statutory Instruments Act. As it is a first of its kind, we have no visibility into the evidence required to support an order, and we will be left in the dark as to whether or not these powers can override department-issued licences, such as those granted by the natural and non-prescription health products directorate.

As an industry, we continue to support regulation and legislation that protects Canadians and is developed in a transparent, responsible and appropriate manner. Regulatory amendments pushed through omnibus bills do not reflect this value.

Today we ask this committee to consider removing division 31 from this act. This committee amended the budget in 2017, and we urge you to consider this precedent here. The restrictions placed by division 31 on health products, including natural health products, have consequences beyond what the current Minister of Health has communicated. With the power of this and no due process, Health Canada has made itself the judge, the jury and potentially the executioner. We cannot overstate the need to approach regulatory changes of this nature and this magnitude in the proper way—with study, analysis and consultation.

I thank you again for your time and I am happy to answer any questions you may have.

[Bernard Brun, Vice-President, Government Relations, Desjardins Group]

Good morning, Mr. Chair.

Thank you, dear committee members, for this opportunity to speak with you today.

My name is Bernard Brun and I'm the head of government relations at the Desjardins Group.

With assets of over $420 billion, Desjardins is the largest co‑operative financial group in North America and the seventh-largest financial institution in Canada. To meet the diverse needs of our 7.7 million members and clients, our activities cover every aspect of the financial sector, including services to individuals, business services, wealth management, personal insurance and general insurance.

Desjardins supports initiatives that would enable it to provide enhanced financial services to its members and to Canadian citizens. The objectives of the consumer-driven banking framework, commonly known as the open banking framework, would appear to do just that. We therefore support the ultimate objective, which is the implementation of a framework to allow consumers to control the sharing of their data.

Unfortunately, the proposed framework has a major structural flaw. Our current concern stems from the fact that the proposed framework would do more than introduce a common technical standard for all of the country's financial institutions; it would also establish a separate mandatory framework for federal financial institutions, to which provincial institutions could adhere.

As this government admits, the field covered is one of shared or joint jurisdiction. Concretely, it would lead to a dual overlapping framework for the jurisdictions, which would certainly put provincial financial institutions, like caisses populaires and credit unions, at a disadvantage. Although adherence to the framework is theoretically voluntary, financial institutions would end up being required to adhere in order to remain competitive and provide proper services to members and citizens, and also because of risk management considerations.

As I was saying, the current bill has a structural flaw that would have a major impact. It needs to be corrected as soon as possible. The government must avoid a false start in terms of consumer-driven banking services to ensure that it covers the entire financial sector and all consumers.

As a systemically important financial institution nearly all of whose activities are subject to provincial regulation, we believe that the inevitable overlap between the federal framework being proposed and the existing provincial framework is counterproductive. It's a barrier to competitiveness.

The adoption of the bill in its current form would undermine consumer and user confidence, when this confidence is crucial to the concept underpinning the idea of open financial services.

A two-tier system would place consumers at a disadvantage and, more to the point, make a consistent consumer experience impossible, while ultimately reducing credibility and innovation.

The Desjardins Group is in favour of introducing a framework that would enable consumers to control how their data is shared. In order to do so, corrective action is immediately needed in terms of governance and structure, if we are to continue to benefit from current favourable conditions and avoid future delays.

Under the circumstances, dear committee members, we asked the government to remove division 16 of part 4 of Bill C‑69 and to make it a separate bill so that the proposed framework could be reviewed in depth to allow all of the entities affected and the public sectors, including provincial authorities and governments, to have the same view and understanding of the future system.

Thank you for listening. I'd be more than happy to answer your questions.

[The Chair, Liberal, Peter Fonseca]

I call the meeting to order.

Welcome to meeting number 145 of the House of Commons Standing Committee on Finance.

Pursuant to the House of Commons order of reference adopted on Wednesday, May 22, 2024, and Standing Order 108(2), the committee is meeting to discuss Bill C-69, an act to implement certain provisions of the budget tabled in Parliament on April 16, 2024.

Before we begin, I would like to ask the members and other in-person participants to consult the cards on the table for guidelines to prevent audio feedback incidents from occurring. Please take note that the following preventive measures are in place to protect the health and safety of all participants, including the interpreters.

Use only an approved black earpiece. The former grey earpieces must no longer be used.

Keep your earpiece away from all microphones at all times. When you are not using your earpiece, place it face-down on the sticker on the table for this purpose.

Thank you all for your co-operation.

Today's meeting is taking place in a hybrid format, pursuant to Standing Order 15.1 and in accordance with the committee's routine motion.

Concerning connection tests for witnesses, I'm informing the committee that all witnesses have completed the required connection tests. Everything is good with that.

I would like to make a few comments for the benefit of the members and witnesses.

Please wait until I recognize you by name before speaking. For members in the room, please raise your hand if you wish to speak. For members on Zoom, please use the “raise hand” function.

The clerk and I will manage the speaking order as best we can, and we appreciate your understanding in this regard.

I remind you that all comments should be addressed through the chair.

Before I welcome our witnesses, I want to thank our clerks, Alexandre and Ariane, for their great work. In really short order, they've been able to gather all the witnesses and bring them all before us. Thank you very much for your tremendous efforts.

Now I'll welcome our witnesses.

From the Desjardins Group, we have the vice-president of government relations, Bernard Brun. Welcome, Mr. Brun.

From the Canadian Health Food Association, we have the president and chief executive officer, Aaron Skelton, and Laura Gomez, lawyer and legal counsel. Welcome.

Also with us, from the Mining Association of Canada, is the president and chief executive officer, Pierre Gratton. Welcome, Mr. Gratton.

With that, we'll start with your opening statements. We'll start with Mr. Brun for up to five minutes.

Thank you.