Bill C-8 (Historical)

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

[Ryan Williams, Conservative, Bay of Quinte, ON]

Mr. Speaker, we only have to listen to the constant sound of horns outside of Parliament to hear the siren of Canadian voices discontent with the state of our country. Meeting to have an open conversation with truckers and now farmers is not a sign of defeat or concession, as the government tries to make it appear. It may be the only way to end this protest and send our truckers home. It is a sign of leadership. It is the job we all signed up to as parliamentarians. We are the representatives of everyone in our riding, not just those who voted for us, not just those we agree with, but everyone.

Canadians need hope. They want to know that the sacrifices they have made for their businesses, their families, their friends and their fellow Canadians by stepping up to get vaccines and boosters mean that they will see the light at the end of the tunnel. Canadians see where other nations are, and they see the hope that is coming from within them. The U.K. has lifted all restrictions from COVID-19. The Americans had full stadiums as they watched some exciting football for the AFC and the NFC championships last weekend. Go, Rams.

Canadians heard the health minister muse about seeing it coming with regard to a mandatory vaccine mandate on January 7, and when Quebec announced an anti-vax tax, the Prime Minister said that it could work. Vaccines are the best tool for fighting COVID-19, but we must use hope, not fear. The over 85% of Canadians who have made the choice on their own accord to get vaccinated want to know that there is hope and not fear as we end a pandemic and enter an endemic.

Part of that is Canada's ability to develop vaccines to contribute to COVAX and provide alternatives for the vaccine-hesitant. Quebec has two vaccine facilities that could provide these options. Both Medicago and Novavax, a plant-based vaccine and a protein-based vaccine, could provide Canadian jobs and help us meet promised COVAX goals, as we have only met a quarter of those, and help vaccinate the vaccine-hesitant here at home and the vaccine-starved across the globe. However, the government has not yet been able to see approval of these vaccines, both of which submitted applications for approval in early 2021, and Canada has yet to produce a vaccine through this pandemic.

Instead of acquiring vaccines and rapid testing in a timely manner, or approving vaccines that would help get the world vaccinated to help quell COVID-19, the government response has been consistently to dither and spend money it does not have. As our debt is now reaching a jaw-dropping $1.2 trillion, the desire to spend our way out of the pandemic has led to some far-reaching results for our country: a housing crisis that is the worst in the world; an inflation level that is the highest it has been in 30 years; and the largest increase in poverty and inequality in this country in 20 years. The government's continued fantasy of spending to end the pandemic has not worked yet, and it will not work now.

We need real solutions to solve our crises. Government needs to work on listening to Canadians, reducing red tape and allowing the Canadian economy and Canadian innovators to be unleashed as this pandemic becomes an endemic, instead of its failed spend-to-oblivion policies.

Housing is a crisis, an existential crisis that requires massive ambition and innovation to solve, working with all levels of government. Working with the housing industry, we can help lead and find solutions now. We have over 200,000 skilled workers who are in limbo with Canadian immigration, which includes skilled trades that could start building homes today.

The immigration minister acknowledged this week that the shortage of skilled workers is in flux and that he does not know when it will be open again, maybe at the end of 2022. However, we need $85 million, again more money, to fix it. Meanwhile, Canadian trades are screaming for more people to build homes and are not building them because of the lack of labour. This is an issue that could have been fixed years ago. Now with the housing crisis, it is only adding more fuel to the house fire that is our housing market.

The Conservative plan to use 15% of existing vacant government buildings for housing would have meant that trades could build units of housing today, not in the 10 years that it takes Toronto to build a high-rise now. Working with provinces in declaring a crisis on housing, we could start to massively contribute to an economic boom that would create jobs and create homes.

More important, we in the Conservative Party believe that if we are going to add more debt to the Canadian public, it should be on investments that better this country, including our health care.

For Bill C-8, our opposition is that, if we are going to spend $70 billion, then why not spend it on health care to increase health care capacity in our ICUs and our hospitals? Some of our provinces were locked down and businesses were closed completely because of the lack of staffed health care capacity in this country.

Looking at hospital beds per capita in the most developed nations in the world, Canada was behind 37, including being dead last in the G7. As a matter of fact, Japan, Korea and Germany have four to six times the number of staffed beds per capita than Canada does. In the Conservative platform, we had dedicated $60 billion, if we are talking about money, to new health care transfer spending to increase health care capacity.

If we are going to spend money, whether that be for Bill C-2 or Bill C-8, would it not be better for all Canadians if, instead of money being provide to businesses that are shut down, that money were to be used to prevent the economy from being shut down?

This bill is no different. This $70 billion needs to be spent now in health care transfers to increase both health care and ICU capacity, and to increase the number of health care professionals that we are desperately missing in our regions. We need health care professionals, nurse practitioners and nurses, and we need doctors. In Bay of Quinte, we are short over 30 doctors. That means that residents who need primary health care are going to the ER. Canada is short over 70,000 nurses.

Spending $70 billion more of taxpayer dollars without that money being invested into health care first and foremost is a travesty because it will add to the growing inflation that is plaguing this country. It would also not take care of the problems causing more lockdowns in the country and more angry Canadians desperately looking for the government to listen to them.

If we are going to fix inflation and the housing crisis, if we are going to listen to angry Canadians, we must fix those issues that are plaguing them, and we need to fix them now. Spending more money we do not have would fuel our already mammoth inflation, our housing crisis and the growing inequality in Canada without fixing the problems that would help Canadians get through the dark tunnel of this pandemic into the light that would be living with an endemic and getting lives back to normal.

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

Madam Speaker, the member is not being consistent. On the one hand he is saying to cut back and stop the spending. He opposes the legislation because it involves spending money.

On the other hand, he is saying that we should spend more money on health care transfers, even though this government has sent record amounts in health care transfers. Not only that, but we are also dealing with mental health and many other issues in health care. In this bill, there is $1.72 billion being allocated to purchase rapid testing and equipment such as that. If we did not spend the money, those tests would not be there. Then it would have to be the provinces to come up with it.

Does the member not support the financial expenditures that are targeted in Bill C-8?

[Ryan Williams, Conservative, Bay of Quinte, ON]

Madam Speaker, I support the spending that needs to happen to increase our health care now, and I supported rapid testing a year and a half ago when we asked for it and did not get it.

We had residents lined up for rapid testing because there were no rapid tests. Now that they are saying they are going to fix it, we do not need it. We need health care fixed. Let us put money towards health care, and fix our problems in health care.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Madam Speaker, I was touched by your statement this week and I want to offer my condolences.

I have a question for the Parliamentary Secretary to the Leader of the Government on the other side of the House. I would like to know who ultimately makes health care expenditures. Do the provinces spend the money or is it the federal government?

Is it not an indication of some kind of structural problem when the federal government holds on to money from Quebeckers and Canadians and sets conditions on that money, interfering in provincial jurisdictions?

Would it not make sense to solve this problem once and for all by transferring the money to the provinces without conditions?

[Ryan Williams, Conservative, Bay of Quinte, ON]

Madam Speaker, we all agree that the provinces want just as much as the federal government, and it sometimes thinks it just grows on trees.

I know the federal government has to be responsible for what it is putting its money towards. I understand the provinces will decide where it wants that money. If we put money towards federal transfers for health care capacity, and we as the federal government could always track that capacity, then we would be fixing the problem once and for all with not just beds, but staffed beds. We need staff and we need beds. We need to work with the provinces to make that happen.

[Don Davies, NDP, Vancouver Kingsway, BC]

Madam Speaker, picking up on my hon. colleague's comments, he is absolutely right. Among OECD countries, Canada's ICU beds per capita is less than everyone but Mexico. We are 26 out of 27 in terms of number of doctors per thousand. Among developed countries, we rank tenth out of 10 in terms of wait times. Of course, the reason for this is that in 2014 the Harper Conservatives capped the federal health transfer at 3% when health care costs are rising at 5%. The current government said it would change that, but then it adopted the Harper cuts.

Will my hon. colleague finally acknowledge that part of the problem today is the Conservative and Liberal cuts to health care that kept federal transfers at 3%, and does he agree with the NDP that it is time to raise it so that we can start properly funding the health care system in this country?

[Ryan Williams, Conservative, Bay of Quinte, ON]

Madam Speaker, a kid in kindergarten pushed me, and I do not hold a grudge against him as that happened 20 or 30 years ago. We have to focus on today. I am not sure about the Harper government. I was not here, but I love when Stephen Harper's name is brought up because he was a great prime minister.

We have to look at health care and health care means looking at ICU capacity. It means looking at staff. It means looking at nurse practitioners and doctors. I know my hon colleagues on the health committee are going to be studying that. I look forward to those results. Let us get those to the House and let us get those passed so that Canadians can benefit from better health care.

[Taleeb Noormohamed, Liberal, Vancouver Granville, BC]

Madam Speaker, I appreciate the opportunity to speak today 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 economic and fiscal update is a transparent report of our nation's finances, but it is about making sure that we have the tools we need to protect Canadians and keep our economy growing. It is about prudence, not austerity, and intelligent investment, not a blank cheque. It would set the stage for us to build on the supports and investments that are bolstering our economy and ensuring its growth for the long term. This means making generational investments in our recovery, such as early learning and child care, so kids in Vancouver Granville and across Canada can get the best start in life. It also means making sure parents, most often women, do not have to make the difficult decision between taking care of their kids or returning to work, adding their immense talent and skill to contribute to Canada's economy.

According to RBC, closing the women's participation rate gap would add another 1.2 million people to the labour force at a time we desperately need workers to fill the almost one million jobs across Canada. It means investing in affordable housing and in a green transition. We all know full well that a green transition of our global economy is well under way. It represents a great economic opportunity to create good, sustainable jobs across Canada for generations to come. It means supporting the technology sector, the world from which I came, so that we can be a global leader in innovation and in building the economy of the future today.

This is not just about spending, but about creating conditions for future growth, fighting climate change by building a greener economy and ensuring that indigenous communities are included in every conversation about the innovation economy. Fostering diversity and inclusion are not just the right things to do for the fabric of the country, they are also the right thing to do to build a more prosperous future. By ensuring an economy that includes all of us, we access a wider range of experiences, perspectives and skills that would increase global competitiveness, support the long-term success of Canadian communities, rural and urban, and allow us to leverage best in class Canadian expertise on the world stage.

As we emerge from these moments of uncertainty, our priority must be on economic stability and long-term growth. The choices we make now will lay the foundation for the future that we will be leaving to our kids. I am proud of the work this government has done to keep us moving forward since 2015, no matter what challenges we have faced as a country.

We have also heard a lot about the pandemic's impact on our supply chains. That is why our government announced a call for proposals under the national trade corridors fund, which has allocated up to $50 million to support projects designed to eliminate supply chain congestion.

We know good transportation infrastructure and efficient trade corridors are crucial to Canadian businesses' success in the global market.

Many predicted it would take years to rebuild our economy from the wounds of the pandemic, but look at us now. We are poised for robust growth in the months to come, growth that will help us pay down the debt and reduce the deficit. We can already see the results of the work that has been done. The December labour force survey from Statistics Canada showed that our labour market gained 55,000 jobs and our unemployment rate dropped to 5.9%, its lowest since the start of the pandemic. Thanks to the resilience of Canadians, we have well surpassed our target of recovering one million jobs.

Our plan is working. As we continue to meet the challenges of COVID-19, we are staying the course, focused on climate change, advancing reconciliation with indigenous peoples and building an economy that is stronger, fairer, more prosperous and sustainable for the long term.

Let me talk about specifics. I spent a large part of my life in the tech sector building small companies into larger ones and taking intelligent managed risks knowing that I have accountability to my employees and investors. Like many business owners and entrepreneurs, I had to think about long-term growth and building resilience for rainy days, and often we have to borrow to invest in growth. That is what this government has done for Canadians during the pandemic. Now it is time to build on the remarkable return on that investment.

This pandemic, as we all know, has not been just a rainy day. This is a once-in-a-generation black swan event, a global crisis. That is why in Bill C-8 the Canada emergency business account is such an integral and important measure. The CEBA is one of the key government supports that local businesses have relied on to weather the darkest days of this pandemic. As we all know, the CEBA provides interest-free, partially forgivable loans of up to $60,000 to small businesses to help cover their operating costs during difficult times.

Let me put that into perspective. We all know that small businesses in each of our ridings are the backbone of our economy. My constituency office is in the neighbourhood of South Granville, a vibrant neighbourhood where the streets are lined with small businesses, mom-and-pop shops, restaurants, sidewalk cafes, bookstores and gift shops, all of which build and contribute to thriving communities. They employ our neighbours. They help families pay their rent and mortgages. Without government support, many of these pillars of our community would be out of business today.

Because of the Canada emergency business account, nearly 900,000 small businesses have been able to keep their doors open. Eligible businesses have accessed nearly $49 billion in federal support, and because many small businesses continue to face pandemic-related challenges, in January of this year our government extended the repayment deadline for loans, to qualify for partial loan forgiveness, to the end of 2023. This extension will support short-term economic recovery and offer greater repayment flexibility. Bill C-8 would give folks six years to pay off their CEBA loan, ensuring that loan-holders are provided consistent and fair treatment no matter where they live.

Bill C-8 would also deliver financial support to our Canadian farmers, who never stopped working to keep food on our tables, through the challenges posed by COVID-19 and beyond. Canadian farmers, like Mickey and her family, with whom I had the pleasure of meeting yesterday, have demonstrated great resilience, stepping up to deliver despite their own challenges. They have done their part in shoring up our food supply by investing in greener, more sustainable farms. With Bill C-8, we would be giving them a well-deserved hand while continuing to help meet our national climate change objectives.

The new measures in Bill C-8 would build on the significant support for businesses that became law with the passage of Bill C-2 in December. With Bill C-2, our government made sure that the economic supports needed for businesses would still be available, if and when needed. With the reality that provincial health restrictions remain in effect in certain regions across this country, we know that businesses continue to suffer and face challenges. Applications are now open for the local lockdown program, which provides wage and rent subsidy support of up to 75% for employers who have had to reduce the capacity of their main business by at least 50%. To expand access to the program, we have temporarily lowered the revenue decline threshold for eligibility from 40% to 25% through to mid-February. For businesses facing other pandemic-related losses, support is also now available through the tourism and hospitality program and the hardest-hit business recovery program.

By supporting businesses through these challenges, these programs are protecting people's jobs and allowing people to stay connected to their employers. As the Deputy Prime Minister and Minister of Finance has said, this keeps people strong, it keeps families strong and it keeps businesses strong. That is what we need to keep our economy strong.

As we emerge from the pandemic, our national focus must be jobs and growth. This means attracting top international talent and more immigrants and temporary foreign workers to help Canada meet long- and short-term labour market needs.

We have heard a lot about labour shortages recently, but our Canadian economy continues to grow. We have now surpassed our target of creating one million jobs. In fact, in December, as I said, we recovered 108% of the jobs lost at the peak of the pandemic. Immigration is a big part of the engine of our economy. It helps address labour shortages and strengthens our communities. Not only are immigrants essential to Canada's economy, but they also bring fresh perspectives and connect Canada to the world. In short, immigration bolsters our economic future and connects us to the world.

The good news is that the fall economic statement allocated $85 million to help unlock access to Canada. This targeted investment will reduce processing times in key areas affected by pandemic-related delays. Ensuring Canada's immigration system is well positioned to meet Canada's economic and labour force goals is essential to our future success.

As I said earlier, our long-term strategy of prudence, not austerity, and intelligent investment, not a blank cheque, is the best path forward for success. To bring this to life, we must lean into our clear vision and use public policy levers to make Canada a global leader in technology and innovation. For Canada to lead on the global stage, we must ensure that we create the conditions necessary for that to happen. That is exactly what we are doing. When we implement new approaches, Canadian innovators, businesses and non-profits respond. Building an innovation economy means thinking about where we want to go, not where we are today. It is clear that Bill C-8 is the next essential step in keeping Canadians and our economy strong, while setting the stage for long-term economic prosperity.

The record is clear. Our government delivered unprecedented support in order to keep Canadian families and businesses solvent throughout the pandemic, and investment in our economy has continued and will continue to pay off. The plan is working. Our GDP has returned to prepandemic levels, and both Moody's and S&P have reaffirmed Canada's AAA credit rating. We came into this crisis with the lowest net debt-to-GDP ratio in the G7, and we have increased our relative advantage throughout the pandemic.

The measures contained in Bill C-8 are fundamental to supporting Canadians and Canadian businesses, and the provinces and territories, as they continue to battle COVID-19. They need the support to get through the fight and come out stronger, and they are counting on it. They are counting on us. I encourage my hon. colleagues to bear this in mind in their consideration of this essential bill, and join me in supporting its expeditious passage through the House so that Canadians can get the help they need at the time they need it.

I am thankful for this opportunity to make this case.

[Anna Roberts, Conservative, King—Vaughan, ON]

Madam Speaker, I have a question that no one has been talking about, and I would like to address a couple of the member's statements on the future of our kids and borrowing.

First of all, we have a lack of supply. In my riding, the average price of a condo is $1 million. Apart from the average price of the condo, we also incur costs when purchasing property, so addressing the financial burden on new homeowners is essential. Taxes, such as the carbon tax, the tax on energy and the tax on fuel, create the opportunity for individuals not to be approved by financial institutions. When we take into consideration their gross income and their qualification based on TDS and GDS, it is very important to understand that a person's income can buy less because of the inflation situation.

Can my hon. colleague please explain to me how we are going to help people get into the market when we do have inventory, given their income is dropping and they cannot afford it?

[Taleeb Noormohamed, Liberal, Vancouver Granville, BC]

Madam Speaker, there is no question that around the world inflation is a challenge that countries are dealing with, but Canada has fared better than most countries, including the United States.

The reality is that many of the measures we need to put into place for future-proofing our economy are the types of measures that require government investment. They are investments we have made. They also requires us to think about the challenges that Canadians, like those in the member's riding, are facing. This is why the supports and incentives this government has put in place for folks to improve their quality of life, including for child care, for example, will help to increase the wealth of Canadians. These are important initiatives and we are going to continue to invest in them.

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

Madam Speaker, my colleague's speech was very interesting.

My background is in education, where we use the sandwich method to talk about the successes and challenges we observe. We start with the bread, a positive comment, such as, the Liberals do an excellent job of highlighting their own qualities. Next up is the baloney, and there is a reason it is called baloney: there is something about it that is not quite right and could be a lot better. Last is another slice of bread.

In this case, there is not much to the sandwich if we are talking care. If I look at Maslow's hierarchy of needs, right at the bottom is food and housing security, but we have been short 50,000 units a year for 30 years.

When will meaningful new investments be made in affordable social and community housing?

[Taleeb Noormohamed, Liberal, Vancouver Granville, BC]

Madam Speaker, I will try to answer in French.

As my colleague knows, our government has made incredible investments, with an additional $6 billion for affordable housing. We will continue to invest, and we will continue to work with the provinces and communities in every region of our country on this very important issue, in order to determine what solutions will work for them in their particular circumstances.

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

Madam Speaker, I want to talk specifically about housing. In his statement, the hon. member made mention of the importance of making generational investments. I took a good review of Bill C-8, and there are many deficiencies. One of the biggest deficiencies I noticed, which I would like the hon. member to comment on in particular, is the fact that there is no mention of the anti-flipping tax. We know that flipping properties and injecting wealth into these properties to increase their value is creating more barriers for people to participate and purchase housing, which is a serious problem that is driving the cost of housing up and limiting the market.

Will the member comment on why the anti-house-flipping tax is not in this bill?

[Taleeb Noormohamed, Liberal, Vancouver Granville, BC]

Madam Speaker, as the hon. member knows, there are provisions that have already been put in place to address foreign buyers. We will continue to move forward on all the commitments that were made, including such provisions. I think all of the provisions we can put in place to increase affordability and make it easier for Canadians are not only important, but essential to making sure we can reach a place where every Canadian has a place to call home. That is why our government is going to continue to take those steps and make those investments, as the Minister of Housing has been doing and will continue to do over the coming weeks and months.

[Adam van Koeverden, Liberal, Parliamentary Secretary to the Minister of Health and to the Minister of Sport]

Madam Speaker, I would like to acknowledge my colleague and thank him for his recent support with respect to a round table I hosted on co-op housing.

I thank the previous questioner from the Bloc Québécois for raising the topic of public housing, because it is something I am passionate about and I know my colleague on this side shares that.

It seems that a lot of the questions coming from the other side, particularly from the Conservatives, indicate they may not have read the bill. They are asking about rapid tests, yet the bill includes rapid tests. They are asking about kids getting back to school, yet this bill includes a lot of support for schools to get back to a healthy way of learning, with better ventilation. They are asking about workers and businesses, yet there are provisions for all of those entities in which it is very important that we invest. They also suggest that the sky is falling with respect to the economy, while experts are indicating our recovery is quite strong and the job market is strong. The most recent labour force survey of Canada indicates our recovery has been strong.

Could my hon. colleague comment on some of the relevant aspects of Bill C-8 that would have a positive impact in his riding?