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

[Rachael Thomas, Conservative, Lethbridge, AB]

Mr. Speaker, there are those in the House who like to use these false talking points that the oil and gas industry is highly subsidized and is propagated by the government. It is the other way around. This industry is helping fund some incredible infrastructure within our country, such as hospitals, roads, bridges, recreational centres and high-paying jobs for moms and dads so they are able to take care of their families.

Let us talk about another thing here, in addition to all of that. Let us talk about the fact that oil in this industry has the highest environmental standards in the world when it is developed here in Canada. Hold on. Let us talk about another thing. Let us talk about the fact that it is ethically produced. We have ethics in the country, folks. It is amazing. The same cannot be said for Saudi Arabia. The same cannot be said for Russia. While the government would prefer to prop up those true dictatorships, I certainly do not support that.

[Niki Ashton, NDP, Churchill—Keewatinook Aski, MB]

Mr. Speaker, while there are a number of issues that many of us would have with what we have just heard in the House, from misrepresenting the carbon footprint of Canada's oil and gas industry to the state of the pandemic, I want to focus on a talking point that the Conservatives love to use: their defence of working people. Every time they have the chance to actually act, we see the opposite. They voted against extending EI supports and sided with CEOs on keeping their stock options. The reality is that Canadian workers and communities are paying the price of crushing inequality. Canadians expect the rich to pay their fair share of taxes, yet the Conservatives are not on that page alongside them.

Why do the Conservatives prefer to protect the rich instead of making them pay their fair share of taxes?

[Rachael Thomas, Conservative, Lethbridge, AB]

Mr. Speaker, I want to congratulate the hon. member for her new role within the government.

Regarding the rich, first let us define that. What does that mean? Is that an individual who makes $100,000 a year? Is that an individual who makes $300,000 a year? How about $1 million or $10 million a year? What is “the rich”? What exactly are we talking about here, folks?

Here is the problem. Most often, the NDP-Liberal government, when it uses this term, is actually talking about those individuals who are incredibly creative, who are incredibly innovative and who have moved forward to take a risk, invest their capital and create jobs for Canadians. It is amazing.

The Prime Minister would like to call these individuals fat cats and tax cheats, but I like to call these individuals entrepreneurs, job creators, wealth generators and Canadians worth celebrating.

[The Deputy Speaker, Chris d'Entremont]

We did get a little off-base in our timing here of what questions and answers really should have been. I want to make sure. There are a lot of interruptions here. Let us try to keep things to something sensible, and have good questions and good answers as we have all around.

Continuing debate, the hon. member for North Okanagan—Shuswap.

[Mel Arnold, Conservative, North Okanagan—Shuswap, BC]

Mr. Speaker, it is an honour to rise today representing the people of North Okanagan—Shuswap as I 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. That was three and a half months ago, and 21 months after the first COVID-19 pandemic lockdowns.

Much has changed in the past months since this bill was introduced. When I look at sections of this bill, I cannot help but question why the government has been so slow to respond to the pandemic and provide Canadians, and provincial and territorial governments, with the support they need.

In part 1 of this bill, we see one section proposing the introduction of a new, refundable tax credit for eligible businesses to claim ventilation expenses incurred to improve air quality. Why did it take 21 months for the government to offer this support to Canadians and workers?

Part 2 of this bill proposes to implement a 1% tax on the value of vacant or unused residential properties directly or indirectly owned by non-resident Canadians.

Part 4 of this bill authorizes payments to be made out of the consolidated revenue fund for the purposes of supporting ventilation improvement projects in schools. I hope we can all support measures to protect students, teachers and school staff, but again, why did it take 21 months for the government to propose this measure?

Part 5 of the bill authorizes payments for the purposes of supporting COVID-19 proof of vaccination initiatives. I ask everyone not to worry. I believe that within this too little, too late bill, there may be a timely response in part 6, as it authorizes the Minister of Health to make payments of up to $1.72 billion for rapid COVID-19 tests.

I do not want to get too excited about this proposal. I would like to know how many rapid tests Canadians will receive for this proposed $1.72 billion, so that all members may have a sense of what the cost per unit is that the government has negotiated. We still do not know what the cost per unit is that we paid for vaccines. Perhaps someone on the government's side could provide this information in today's debate, because my constituents and I, and many other Canadians, would like to know.

We are now months beyond the introduction of this bill and many more months beyond the point in time when Canadians, families, employers and schools needed timely, improved ventilation and access to rapid testing. Both as a Canadian and as a member of the House, I have to say that the government and its leader have let Canadians down. Why did the government wait until December 2021 to table these proposals?

When it was apparent that the Prime Minister would not recall Parliament for some time after last year's unnecessary election, I initiated consultations with representatives of indigenous, provincial, regional and municipal governments in my riding of North Okanagan—Shuswap to receive their perspectives on the needs and priorities of the communities we represent.

This bill could have helped Canadians and those communities as they worked their way through the challenges of COVID-19 had these proposals been tabled sooner. Rapid COVID-19 test kits could have helped to prevent the spread of COVID-19, especially in workplaces. Supports for improved ventilation systems could have also made workplaces safer for workers, and schools safer for students, teachers and other staff.

Unfortunately, like much of the government's response to the threats facing Canadians and the global community, this bill was too little, too late. Over 18 months ago, Conservatives were calling on the government to make rapid tests available to Canadians so that family members could see aging parents in care homes.

We called for more rapid tests so parents could have an alternative to keeping their children in isolation, home from school and out of other activities. People have missed work and businesses have closed because workers had to isolate, not knowing if they were positive or not. Others have lost their jobs and may not be able to return. All of this has impacted the hard-working residents who live in those communities I mentioned.

The timely provision of rapid tests could have saved jobs and businesses, and here we are today debating $1.72 billion for COVID-19 tests, over a year and a half after they were needed. How many family members have suffered anxiety, stress and mental health issues because they did not have timely access to testing? This is a number we may never know, but it is safe to say it is a significant number. I believe we all hope that the people in our communities will never endure those anxieties and uncertainties again.

Much of what I am speaking on today is about preventive and pre-emptive steps the government should be taking in order to avoid higher costs and to confront damages after they have been inflicted. In many of the consultations with the community leaders I mentioned, there was a common theme: the need for timely preparation for and prevention of known and likely threats and disasters, whether it be enhancing protection perimeters of communities against threats of wildfire and enhancing flood protection systems, or building more reliability into transportation and infrastructure, such as the Trans-Canada Highway from Chase, B.C., to the Alberta border. Residents and communities expect and need their federal government to be proactive and invested in prevention. Time is of the essence.

As for part 2 of this bill, does anyone in the House actually believe the 1% tax on absentee foreign owners will address skyrocketing housing costs in B.C.? Since 2016, the price of an average home has ballooned from $476,000 to over $811,000 today. This increase has been propelled by more factors than foreign buyer pressure alone. The government must take the necessary steps to look at this in its entirety, and the housing crisis, and develop proposals for a holistic response to deal with it. Increasing real estate prices are part of the inflation wedge that is expanding the gap between Canadians already in the market, who have housing access, and Canadians still trying to raise a down payment while clinging to the shrinking hope of owning their own homes.

I pray that it is not too late to curb the rising inflation for young people, such as my constituent Ryan, who lives in Vernon. He and his family are desperately trying to save for a down payment to purchase their own home instead of renting part of a home from their parents. Like many communities across Canada, communities in the North Okanagan—Shuswap need increased housing inventory to meet the needs of residents, especially those at low and medium income levels.

When I look at this bill, I am also disappointed that the Deputy Prime Minister and Minister of Finance failed to recognize the need for enhanced mental health supports. With all of the money her government has printed and spent over the past two years, one would expect some recognition of the mental health needs of Canadians, but this bill has none.

I would be remiss if I did not say that I speak today not out of personal concern for myself, but out of the concern I have for the young people of today and future generations who will be left to pay the interest on the debt the government is amassing under a short-sighted leader who only looks at today or the next election rather than at the long-term future of Canadians.

I call on the government to change its ways and embrace the notion of prevention. In the months and weeks leading up to the pandemic, the government ignored warnings from the Department of National Defence and the National Research Council. Prevention can save costs. Prevention can save lives.

In closing, I would like to thank the elected representatives across the North Okanagan—Shuswap, who I work with on an ongoing basis for the benefit of the constituents we represent, and the people of the North Okanagan—Shuswap.

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

Mr. Speaker, for Canadians watching at home, Bill C-8 was the fall economic update. We are almost through March right now. There are important measures in this legislation that matter to farmers. I know my hon. colleague has farmers in his area, in the interior of British Columbia. There are elements around rapid testing. There are a lot of different measures in this bill that matter, and it is the fall economic statement.

Can the member tell the House when he expects the Conservative Party will actually stop speaking to this bill and let it be called to a vote so we can get those measures to Canadians and to his constituents accordingly?

[Mel Arnold, Conservative, North Okanagan—Shuswap, BC]

Mr. Speaker, the member asked when we will stop speaking to the bill. I would never encourage members of the House to stop speaking about a bill as significant as this, with billions in spending, no accountability and coming from a government that let the priorities pass on for months before it even introduced it. Therefore, I will take no lesson from this member about when we should and should not speak about a bill.

[Denis Trudel, Bloc, Longueuil—Saint-Hubert, QC]

Mr. Speaker, I must admit that I had a bit of a hard time following my colleague's speech. He is worried that the government is not taking care of the debt for future generations. I think that is important too. He talked about the housing crisis and said that the tax on unused properties in Canada is inadequate. I completely agree with him.

I often hear the Conservatives criticizing what the government is doing on the housing file, but I do not hear them proposing a whole lot of solutions. In a study a month or two ago, Scotiabank, which is supposedly one of their friends, said that there is a shortage of 1.8 million housing units in Canada to address the crisis.

My colleague pointed out that housing prices have doubled since the Liberals took office, but accessibility also includes the availability of more housing. What solutions does the Conservative Party propose to address this shortfall of 1.8 million housing units in Canada?

[Mel Arnold, Conservative, North Okanagan—Shuswap, BC]

Mr. Speaker, there is no question that there is a drastic shortage of affordable housing, and housing of any sort, across this country. That is because people have flocked into the housing market as an investment. They have not seen the investment in rental housing being as productive as it used to be, so we have seen a reduction in rental housing in some areas. In consultations with elected representatives in my riding of North Okanagan—Shuswap a couple of years ago, I learned it had been decades since there was a fourplex built in one community because of zoning issues. These are issues where we are all going to need to work together with all levels of government to identify what it is we can do to create more housing for Canadians. It cannot be simply government alone.

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, to follow up on that, the hypocrisy is that, in the past, governments, the Liberals and the Conservatives, talked about government getting out of the way of getting action on things, including housing and so forth. The 1% tax is not seen as sufficient, so regarding inventory, what exactly would the Conservatives be involved in? What would they encourage and what specific things would they do with respect to the private sector? I think that is important. Some of the party members are saying we have to get out of the way and others are saying we have to do more than this, so what exactly would they do more of?

[Mel Arnold, Conservative, North Okanagan—Shuswap, BC]

Mr. Speaker, obviously housing is top of mind for many members and, I think, for Canadians right across this country. Incentivizing the construction of residences, whether single-family or multi-family apartment buildings, is where the federal government can make a difference regarding that growth in new inventory that is desperately needed across the country.

[Tako Van Popta, Conservative, Langley—Aldergrove, BC]

Mr. Speaker, I rise today to speak to the government's fall economic and fiscal update.

To better understand the economic pressures that Canadians are facing, we need to look at the data. We have the highest rate of inflation that we have had in a generation. My children are all adults now and do not know what inflation is. It is at 5.7% at the moment, and that means that, on average, everything is going to cost every Canadian citizen almost 6% more today than it did a year ago. If we look at industry-specific statistics, it is much more challenging than that.

For any young families in my riding of Langley—Aldergrove, part of metro Vancouver, who are prospective first-time buyers, the news is not good at all. Single family houses are up 42%, condos are up 39% and townhouses are up 35%. Frankly, it is becoming unrealistic for young families to even believe they are ever going to own a house.

I was talking to Alison in my riding just the other day. She and her husband are both earning quite a bit of money. They have managed to save up a really good down payment. They pre-qualified for a mortgage. They are doing everything right. About a year or a year a half ago, they got into the market to bid on a townhouse. They lost out to a higher bidder. They tried again on a second townhouse. The same thing happened, and they lost out to a higher bidder. They did that 10 times in a row. The tenth time, they bid way over asking price thinking that they would for sure get it. Again, they were outbid by a higher bidder.

I was talking to Alison and she asked what they were doing wrong. I said that she was not doing anything wrong and that she was doing everything right, but that there were economic forces at play that were beyond the ability of ordinary Canadians to deal with.

This is what the Vancouver Sun said just this weekend about this topic:

Young, educated, urban Canadians have [many reasons] to be angry...with Ottawa for the ways it has worsened the housing crisis.

[The Liberal government] has three times campaigned, with apparent earnest emotion, on promises to provide affordable housing. And each time, [it] has reneged.

Canadian housing is now 100 per cent more expensive than when [the Liberals] first took office in 2015.

That is the legacy of the Liberal government, that housing prices have doubled in the time it has held office.

One of the failed programs of the Liberal government is the first-time homebuyers incentive. That is the program that says the government would own a piece of the equity stake in the home of any first-time homebuyers who use the program. Happily, very few people have actually used the program. I was talking to a mortgage broker who works in my neighbourhood, and he explained to me why the program is a failure. It just does not work, certainly not in my riding where houses are as expensive as they are.

Mortgage Professionals Canada, a very credible organization, has said this about the housing affordability crisis: “If we had historically equally considered the demand-side and supply-side policies, we probably would be in a far better position”.

I would just summarize this part by saying this: Is it not a fresh idea that we are going to look at basic economic principles? That is where the government has failed.

[The Deputy Speaker, Chris d'Entremont]

I thank the member for his intervention. There will be about six and a half minutes left when he gets back to this matter.

During the last couple of Statements by Members, it has been getting pretty noisy in the chamber. I am hoping that members could keep their conversations outside in the lobbies, and as they come in, they could listen to these great statements that members are giving.

The House resumed consideration of 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, as reported (with amendment) from the committee, and of the motions in Group No. 1.

[Tako Van Popta, Conservative, Langley—Aldergrove, BC]

Madam Speaker, we are talking about Bill C-8, an act to implement certain provisions of the economic and fiscal update. We are talking about the economic pressures that Canadians are feeling, which are today at a generational high of 5.7%. However, if we look at industry-specific statistics, it can be much worse than that.

We are also talking about housing. The cost of housing, in the time the Liberal government has been office, has doubled. That is the legacy the government leaves behind when it comes to housing. Despite all of its programs designed to make housing more affordable, or maybe because of all those programs, the cost of housing is skyrocketing and it is becoming impossible for many young families to get into their first home. It is a deep concern.

We are urging the government to abandon its programs, like, for example, the failed first-time homebuyer incentive, and to instead look at the basic economic principle of supply and demand. That is the principle that says if an economy is not supplying the goods and services that people need and in the amounts they need, nor the types of product they want, there will be inflation. That is exactly what is happening in Canada today. We have so many young families that want to get into their first home. We have record high immigration, and we all need a place to live. We also have a shortage of rental stock in our growing cities. Coupling that together with unprecedented spending by the government during the pandemic, borrowed money and printed money, we have a perfect storm. We have too many dollars chasing too few goods, and that is what is causing inflation.

I know the governing party has now adopted the Conservative policy in its platform of increasing housing supply. Well, that is a really good idea, and I have a few specific, concrete ideas focusing on my riding of Langley—Aldergrove that would help to increase the housing supply.

First, let us get the SkyTrain built from downtown Surrey to downtown Langley and encourage local governments to open up new areas of land for urban redevelopment.

Second, let us speed up the approval process for new developments so that Canada is the fastest place to get an approval. Investment dollars will come flowing into our economy.

Third, let us create balanced communities and more jobs close to home. Again, I am going to focus on my riding. We need better transit links to Gloucester park in the north part of my riding. We also need better transit links to Campbell Heights industrial park in neighbouring south Surrey. This is what I am hearing from businesses in those areas. They say they cannot get workers.

Fourth, let us train our young people to have the skills and knowledge that employers require. Let us also get more immigrants in. Let us speed up the credentialing approval process, particularly for the trades so we get more immigrants knowing how to build houses so they can build the cities they are going to live in. If we do not solve the housing affordability crisis, we will not be able to tackle inflation.

I am hearing from many people in my riding who are concerned that the government is dismissive about the inflationary pressures they are feeling. They hear the government saying that inflation in 2022 is only transitory because of COVID-related supply chain disruptions and it will all be gone soon. The government also points out that inflation is a global phenomenon. I suppose the implication is that there is not much it can do about it. It also says that even though inflation is at 5.7%, it is not as bad as the rate in other countries, the implication being that there is probably not much it has to do about it.

People in my riding are very concerned. I was talking to a farmer just the other day who is deeply concerned that inflation is becoming embedded in our economy and is not just transitory. He pointed out that the cost of delivering his specialty products from Langley to Calgary has doubled from $3,200 per truckload to $6,000. That is if he can even get truck drivers, because there is a shortage of them, and if he can get trucks, because there is even a shortage of trucks.

There we go. We have a shortage of workers and equipment. We also have ever-increasing energy costs and an increase to the Liberal government's carbon tax coming at the end of this week. All that leads to inflationary pressures.

It is time to unleash the power of the free market again so that our businesses can make more, produce more and pay more wages to more workers, because there is nothing better for the economy than workers taking home a good paycheque. This is what a Conservative government would do. We would unleash the powers of the free market to solve these economic problems and find a much better balance. That is the balance we are looking for, and sadly Bill C-8, an act to implement certain provisions of the economic and fiscal update from the government, is missing that mark.