Bill C-8

Economic and Fiscal Update Implementation Act, 2021

An Act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021 and other measures

Part 1 amends the Income Tax Act and the Income Tax Regulations in order to
(a) introduce a new refundable tax credit for eligible businesses on qualifying ventilation expenses made to improve air quality;
(b) expand the travel component of the northern residents deduction by giving all northern residents the option to claim up to $1,200 in eligible travel expenses even if the individual has not received travel assistance from their employer;
(c) expand the School Supplies Tax Credit from 15% to 25% and expand the eligibility criteria to include electronic devices used by eligible educators; and
(d) introduce a new refundable tax credit to return fuel charge proceeds to farming businesses in backstop jurisdictions.
Part 2 enacts the Underused Housing Tax Act . This Act implements an annual tax of 1% on the value of vacant or underused residential property directly or indirectly owned by non-resident non-Canadians. It sets out rules for the purpose of establishing owners’ liability for the tax. It also sets out applicable reporting and filing requirements. Finally, to promote compliance with its provisions, this Act includes modern administration and enforcement provisions aligned with those found in other taxation statutes.
Part 3 provides for a six-year limitation or prescription period for the recovery of amounts owing with respect to a loan provided under the Canada Emergency Business Account program established by Export Development Canada.
Part 4 authorizes payments to be made out of the Consolidated Revenue Fund for the purpose of supporting ventilation improvement projects in schools.
Part 5 authorizes payments to be made out of the Consolidated Revenue Fund for the purpose of supporting coronavirus disease 2019 (COVID-19) proof-of-vaccination initiatives.
Part 6 authorizes the Minister of Health to make payments of up to $1.72 billion out of the Consolidated Revenue Fund in relation to coronavirus disease 2019 (COVID-19) tests. It also sets out reporting requirements for the Minister of Health.
Part 7 amends the Employment Insurance Act to specify the maximum number of weeks for which benefits may be paid in a benefit period to certain seasonal workers.

Economic and Fiscal Update Implementation Act, 2021

[Colin Carrie, Conservative, Oshawa, ON]

Madam Speaker, one of the things I am concerned about is housing in Oshawa for seniors and youth. Conservatives brought forward Motion No. 54 to ask the Liberals to abandon their first-time homebuyer initiative, because it has literally only helped about 15% of the people it is targeted to.

With this budget implementation act, does the member see anything in it that would increase the supply of housing for Canadians who actually need it?

[Majid Jowhari, Liberal, Richmond Hill, ON]

Madam Speaker, housing and affordable housing have been the focus of our government since 2015. There has never been the amount of investment we have made in housing initiatives through our national housing strategy. Over $75 billion has been invested, or is planned to be spent, over the next three and a half years at least. What we have seen is a very balanced and comprehensive approach to housing, whether it is increasing the supply of affordable housing, getting new families into the market, or refurbishing existing low-income housing to ensure people who need housing have shelter. As well, we have been addressing homelessness.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Madam Speaker, we agree with Bill C‑8 in general. We find it kind of anemic, but we are okay with it.

The part that gives us pause is of course health transfers. Yes, the government transferred huge amounts of money during the pandemic, but that was a one-time thing. Quebec and all the Canadian provinces want a permanent transfer that covers 35%. That transfer is not in here, even though it could be fully or partially funded by anti-tax haven measures, which are also not in here.

When will we see these things in the budget?

[Majid Jowhari, Liberal, Richmond Hill, ON]

Madam Speaker, I thank my colleague. We have the honour and privilege of being on the OGGO committee together.

I would like to make a point on a comment my colleague made. She said, “ad hoc”. I do not think our measures, as they relate to COVID-19, have been ad hoc, especially the ones that dealt with the safety and health of Canadian citizens. I think they have been broad, as I said, and they have been strategic. They have had a great benefit.

Our country is now in a position where nearly 90% of Canadians are vaccinated. We are seeing that the provinces and territories are relaxing some of the restrictions. Our government is, has been and will be there for all Canadians to make sure their health and safety are a priority to us.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, I have a question for my hon. colleague from Richmond Hill. I will be allowed to speak later, just after question period, and will lay this out with more detail and background, but one thing that strikes me about Bill C-8 is that it draws into sharp relief that much of the spending from the federal government is in provincial areas of jurisdiction. It can also be accused of being rather late coming on stream regarding money for schools, ventilation and rapid tests. I am not going to blame the federal government for this. These are provincial areas, and I am wondering why the provinces did not step up. When we look back at COVID, and I hope we do look back and analyze it, we will wonder why we did not have better provincial-federal co-operation early so that Canadians got the help they needed, and businesses, schools and so on got the help they needed, faster.

[Majid Jowhari, Liberal, Richmond Hill, ON]

Madam Speaker, as we all know, eight dollars out of every $10 that was spent on COVID-19 was provided by the federal government. Our government has been at the forefront of COVID-19 from day one. We also talked about how broad and how strategic this expenditure has been.

As it relates to working with the provinces and territories, we are always there, in lockstep with the provinces and territories, to make sure that the health and safety of Canadians are made a priority. As the provinces and territories are removing some of these restrictions, we must figure out where our next role is. What we realize is that, for us to be able to keep Canadians safe as these restrictions are being removed, our area of focus should be schools and, therefore, the air we are breathing, as masks are being removed. We are focusing on that through Bill C-8, as well as on the businesses that would be—

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

Resuming debate, the hon. member for Shefford.

[Andréanne Larouche, Bloc, Shefford, QC]

Madam Speaker, I am happy to speak to Bill C-8, an act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021 and other measures. The Standing Committee on Finance spent a lot of time debating this piece of economic legislation.

Just as an aside, I would like to wish a very happy birthday to someone who just joined us in the House, the member for Joliette. One can hardly tell; I do not see a single new white hair. I wish him a happy birthday.

We describe this bill as anemic because it is sorely lacking in substance. It seems fitting for a worn-out government. This latest version does nothing about the labour shortage, offers no plan to improve productivity and significantly underestimates the magnitude of supply issues, being very weak in the solutions department.

Measures announced last spring to tackle tax havens have also been put off until later, that is if they have not fallen off the radar altogether, even though they are a much-needed revenue source. We are in the midst of the recovery, but it is hard to discern any economic leadership on the federal government's part.

Meanwhile, the successive crises since January, specifically the emergency measures crisis, the war in Ukraine and the increase in COVID-19 cases, remind us that we are not out of the woods yet. More importantly, with the new NDP-Liberal alliance and the tabling of the economic update, the Trudeau government has clearly shown its colours—

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

I must remind the hon. member that we do not refer to other members by name.

[Andréanne Larouche, Bloc, Shefford, QC]

Madam Speaker, the Liberal government has shown its true colours. It is about to come into conflict with Quebec and the provinces, since this means that it categorically refuses to increase federal funding for health care with no strings attached. Whether the Minister of Canadian Heritage likes it or not, this sets the stage for a real fight.

My speech will focus on three issues: the lack of health measures, the lack of measures for housing, and support for our businesses, especially those that will continue to be affected by the repercussions of COVID-19 for a long time to come, particularly the tourism and cultural industries.

First, on health, the federal government should mind its own business and look after what falls under its jurisdiction, such as procuring COVID-19 tests.

The government, however, is maintaining the Canada health transfer escalator at 3% until 2027. This is the legal minimum and below the annual increase in health care costs. We can never say this enough, but Quebec and the provinces are unanimously calling for an immediate payment of $28 billion to cover 35% of health care costs, followed by a 6% escalator.

The message from the Liberal government is crystal clear: It believes it spent enough money last year on the pandemic, so it is refusing to provide its share of health care funding. That reasoning is flawed. COVID‑19 spending is one-time and temporary spending, while the federal underfunding of health is a chronic problem that is choking the finances of Quebec and the provinces. Ottawa is therefore perpetuating the fiscal imbalance, but, most importantly, it is ignoring the lessons it could have learned from the pandemic.

As the critic for seniors, I have to say that we owe it to the victims to try to prevent these tragedies from ever happening again. As the critic for the status of women, I think it is sad that a government that calls itself feminist did not answer the call for help from caregivers and health care workers, most of whom are women who have been on the front lines since March 2020 because of this pandemic.

The Bloc Québécois will not give up its fight alongside Quebec and the provinces for a sustainable, unconditional increase in federal health care funding.

Second, we must tackle the supply of housing, as this is still another serious problem in Quebec. Today, to deal with this crisis, Quebec would need approximately 50,000 new social, community and truly affordable housing units, and that is a lot. I can speak to that because Granby has one of the lowest vacancy rates in Quebec. I am a member of a committee where the city and community organizations are working hard to try to find solutions. However, there is no magic wand, and the federal government must follow suit and take action.

Between 2011 and 2016, under the Conservatives, the number of affordable rental units in the private market for households with the greatest needs declined by 322,600, and this seems to be a continuing trend.

At this time, the Liberals are focusing on a suite of programs and initiatives that address all variables of the housing market except for the most important one, which is more available supply and more housing units. Putting more money in the hands of first-time home buyers, mainly by doubling the first-time homebuyers' tax credit, will do nothing to increase the supply of social or truly affordable housing.

Scotiabank estimates that 1.8 million additional units would have to be built in order for Canada to match the inventory of G7 countries. That shows how much of a gap we have to fill. It is no coincidence that the Parliamentary Budget Officer's most recent report of August 2021 estimates that in the absence of additional funding to address this problem, the number of Canadian households in need of affordable housing will also rise to 1.8 million in five years.

It is important to understand that, if housing supply is the crux of the problem, then social and community housing must be the priority, not the English-Canadian vision of so-called affordable housing, which is growing more and more outdated, particularly in an overheated market.

Despite the incredible rise in housing prices, the housing problem in Quebec and Canada is having a much greater impact on the rental market than on the real estate market. That is why the most important indicator to focus on is housing supply, particularly housing for the most vulnerable, who are growing in number. Social and community housing must be the priority.

Right now, the Liberals' strategy is all over the place. Many of their initiatives have failed. We are already halfway through the time frame set out for the national housing strategy, and yet, according to a recent report from the Parliamentary Budget Officer, the programs specifically dedicated to the construction of housing have spent less than 25% of their budget.

Now is the time to build. Housing will not materialize with a snap of the fingers. If we want to get out of this mess, then we need to exponentially increase our housing supply, particularly our supply of social and community housing.

The national housing strategy, which was launched in November 2017, shows that the government has a good understanding of the impact of housing outside Quebec but it does not take into account Quebec's way of doing things and the AccèsLogis Québec program.

Rather than relying on and promoting what works, the federal government wants to impose its vision, even though its programs do not meet our needs and realities, and focus on affordable housing to the detriment of social and community housing.

There is not enough funding, and that money is not being used effectively. Quebec and the provinces have exclusive jurisdiction over housing. Since housing needs vary quite a bit based on socio-demographic factors, and since provincial and municipal governments are more familiar with local issues, these governments are better able to assess and identify what people need.

Third, I want to talk about assistance for businesses. The Canada emergency business account, or CEBA, was designed to provide zero interest, partially forgivable loans to small and medium-sized businesses to help finance expenses that could not be avoided or deferred as they took steps to safely navigate the shutdowns resulting from public health measures to mitigate the spread of COVID‑19.

Since this program was first launched, the Bloc Québécois has called for amendments to the assistance programs to better meet the needs of businesses. For example, we called for more flexibility in the eligibility criteria. We brought up the issue of business debt early on. A survey done by the Canadian Federation of Independent Business, or CFIB, in December noted that more than one-quarter of businesses in Quebec might not make it through 2022. More than half of small businesses have not returned to normal sales, and the average debt of a small business in Quebec was almost $100,000, going even as high as $206,944 for a dine-in restaurant.

According to the CFIB, as of October 31, 1,454 insolvency cases had been filed in Quebec alone, which accounts for 60% of all cases filed in Canada. I should note that small businesses contribute 30% of Quebec's GDP. We are proud of our SME models.

Clearly, measures that only increase businesses' debt levels are inadequate. We therefore support this measure to extend the repayment deadline to qualify for loan forgiveness.

It would also be important for the programs to include businesses that opened after the beginning of the pandemic, like companies in the start-up phase. The Bloc Québécois has already shared other ideas for improving the situation for SMEs, including support for online commerce and for card payment processing fees. We are calling on the government to negotiate with the card issuers to secure lower fees for online transactions.

In closing, the Bloc Québécois will continue to be there for the businesses and people of Quebec, because the future holds many challenges, from inflation to labour shortages. The Bloc Québécois will be in problem-solving mode, laser-focused on the needs and demands of Quebec.

I have one final point to make about Quebec's demands. We had concerns about Ottawa respecting Quebec's jurisdictions, which appear to be infringed upon by several of the bill's measures. That is why we voted in favour of the bill in principle, in order to better understand the scope of certain parts of Bill C-8.

Based on the testimony we heard and the government's responses in committee, we came to the conclusion that Quebec's areas of jurisdiction were indeed being encroached upon. This is the first time the federal government has dared to interfere in the area of property taxes by seeking to penalize non-resident, non-Canadian second home owners.

The intrusion could not be any clearer. It was illustrated and explained very well by constitutional expert Patrick Taillon, who testified before the Standing Committee on Finance in February 2021.

We introduced a single amendment that would correct the problem. We tried to find a compromise by proposing measures for property taxes, to make this acceptable to provinces that did not want it. Unfortunately, the Liberal committee chair ruled the Bloc Québécois amendment inadmissible before it could even be debated.

Once again, this government is trying to stick its nose in where it does not belong. It needs to mind its own business.

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

Madam Speaker, the Bloc party says that Ottawa should play no role in housing. The member says we should be providing a lot more money and investing in more programs, even though she says we should not be providing housing because it is not in our jurisdiction. The member says health care is not Ottawa's jurisdiction but that we need to provide a lot more money toward health care.

One would think that the Bloc's position is that Ottawa should be an ATM machine and that is it; let us just give the money. Canadians, no matter where they live in the region of Canada, recognize that Ottawa does have a role in housing and does have a role in health. It is called the Canada Health Act. We have the national housing strategy.

I am wondering if the member could provide her thoughts on this. Does she truly believe that Ottawa has no role to play in health or housing, especially when we reflect on the will of the people of Quebec?

[Andréanne Larouche, Bloc, Shefford, QC]

Madam Speaker, I thank my colleague for his excellent question.

I am going to have to repeat the same thing. My answer has several elements. They are called health transfers and they are provided for in the Constitution. As I explained, Quebec has health care and housing programs. Ottawa must transfer the money. That is how it works.

With respect to health care, Ottawa does not know how to manage our hospitals and nurses, but the Quebec government does have that expertise. The Liberal government has been cutting health transfers for far too long. We have ended up with an underfunded health care system. The Liberals say that the issue of health transfers will be addressed after the crisis, but we urgently need that money now because we are in a health crisis.

The same goes for housing. Quebec has its own programs. I sit on committees with provincial and municipal government representatives in Quebec. Everyone is saying the same thing. They know what to do.

Ottawa has a system of federal transfers, which support areas that it is not involved in. It has its own areas of jurisdiction, such as procurement, as I explained. As for the rest—

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

Order. Questions and comments.

The hon. member for South Okanagan—West Kootenay.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Madam Speaker, I agree with almost all of the member's speech and I would especially like to bring up some more issues on the tourism and hospitality sectors that she briefly mentioned.

I have been working a lot on that file lately. The tourism and hospitality recovery program was brought in before omicron, when it was assumed that the pandemic was over, yet it is not. Businesses are still struggling. She mentioned some of the companies that do not qualify, such as start-ups.

Another group of businesses that do not qualify for the program are businesses that are seasonal. Many tourism operators in Canada are seasonal, and yet these companies are basically prohibited from qualifying for this program. I wonder if she could comment on that.

[Andréanne Larouche, Bloc, Shefford, QC]

Madam Speaker, I thank my colleague for his question. It gives me an opportunity to come back to something that I was only able to talk about briefly, and that is help for sectors that will continue to be affected for quite some time because of the pandemic.

My colleague is right that this program dates back to December, before the arrival of the omicron variant. That seems like a lifetime ago because a lot has happened since then. Since we are talking about tourism, I would say that we are coming to the realization that we still have a long road to travel.

That is why I talked about the importance of having more flexible, more tailored programs for sectors like tourism and culture that are still going to be affected for quite some time.

In committee, we asked the following question: Can we get resources to provide more support to self-employed workers in the cultural industry?

We were told that it was too complicated technically speaking. In 2022, can we find solutions, provide support and show some flexibility in order to help them?

Yesterday, members of the Bloc Québécois talked a lot about the importance of predictability. While attending meetings of the Haute‑Yamaska RCM's strategic business intelligence committee, I noted that this is what tourism operators are calling for.

The Government of Quebec and the provincial governments have a plan for lifting restrictions, but the federal government does not. It is important for businesses to be able to plan ahead. These are measures that Ottawa could do something about in order to help these sectors, which will continue to be affected by the pandemic for quite some time.