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.

Motions in Amendment

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

Mr. Speaker, I thank my brilliant and esteemed colleague from Mirabel for his speech.

The housing shortage is affecting everyone throughout Quebec and Canada. It is a major problem. A whole series of measures is required to remedy it.

Yes, a 1% property tax for non-resident owners of underused housing is more than marginal. It is symbolic, and this level of government has no business collecting it, at least not without the co-operation of the provinces.

The problem is that there is not enough housing. The government really needs to make up for all the lost time and, most importantly, build more social housing.

Once again, Ottawa abandoned social housing back in the 1990s, and today we are paying the price many times over. We are now seeing where decades and decades of underinvestment has led.

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

Mr. Speaker, I very much appreciate to be able to rise today and contribute to the House's debate of the Liberal government's bill, Bill C-8, which has been faithfully reported back to the House by the Standing Committee on Finance.

The committee did consider one amendment to that, and of course today we are dealing with the report stage amendments brought forward by my Conservative colleagues. I very much appreciate the work done by committee members in examining this bill. I especially want to thank my colleague, the member for Elmwood—Transcona, who is the finance critic for my caucus and has been shouldering a lot of work at that committee.

Bill C-8 is an act that would implement certain provisions presented to the House in the fall economic statement. It would be a gross understatement to say that the country, and indeed much of the world, have changed since mid-December. I know, from the feedback from people in my riding and people I work with here in the chamber, that the pace of change over the last two months has really left our heads spinning. We seem, as a country, to be lurching from crisis to crisis these days, and it is not giving people much of a breather to accept their changed reality. I am hearing a lot of accounts of the mental health stress this has put on people.

It was back in mid-December that we were just, at the House, beginning to get a glimpse of how bad the omicron wave was really going to be. I remember the news reports in early December that there was some hope that the variant, which first emerged and was detected in South Africa, did not seem to have as much lethality to it, but of course that was blown out of the water by the concerns of how rapidly it spread. Even if a smaller percentage of people ended up going to the hospital, that small percentage, when we had the variant passing through our population so rapidly, did give rise to very considerable fears that our hospital system would be overwhelmed.

Of course we had a change in leadership with one of our political parties in the House. We had the protests descend on Ottawa and many cities across Canada, which turned into an illegal occupation and blockades at our border, further putting strains on our relationship with the United States. Then, of course, beginning just a few short days after that ended, we now have a fully modern conflict raging in Ukraine, where unprovoked Russian aggression is now putting the lives of 40 million Ukrainians at risk.

Here we are. The world has changed quite a bit. I do want to acknowledge that it is a frustrating time for so many people, especially in Cowichan—Malahat—Langford. They are, like many Canadians, dealing with the inflationary pressures. They see the results in the price of food at the grocery store and the cost every time they fill up their vehicles.

What people have also witnessed over the last two years is the fact that so many of the wealthy in Canada, and indeed many of our most profitable corporations, have seen their profits soar during this time. Many of those companies actually took pandemic benefits and were guilty of paying out dividends to their shareholders.

It seems the hard-working families in my riding of Cowichan—Malahat—Langford are working twice as hard as their parents but for less money. These pressures are putting families at the breaking point. That is why I have always been proud to be part of a party that stands for trying to ease that inequality in Canada and making sure the very rich in our country do pay their fair share. If they do not, that burden ends up falling on working families.

In my riding, in the space of one year, depending on what part of the riding someone is in, we saw housing prices increase anywhere in the neighbourhood of 30% to 40%. That is in one year. With those stratospheric record levels of housing costs, of course many people were trying to sell their homes during that time to take advantage of the high prices. All of that selling in the Cowichan Valley also caused a huge crisis on rental availability, because when people are putting their house up for sale, usually the tenants are evicted as it is not really known if the new owner wants to inherit tenants or not.

We also have the worst record in the G7 when it comes to combatting climate change. In my province of British Columbia, we saw a record heat wave in June. We saw wildfires consume so many communities right across the province, and then just a few short months later, we saw catastrophic floods that effectively cut off the Port of Vancouver, our busiest port, from the rest of the country.

A smart government would be looking at this and looking at the evidence that these climate change natural disasters will keep piling up if we do not address them. A smart government would look at the economic toll this will place on our ability to raise revenue in the future.

As for my Conservative colleagues, who like to proclaim themselves as fiscally responsible, they should not ignore the damage this is going to do to future tax revenue and our ability to help communities from coastal inundation, protect them from wildfire danger and stand up for our hard-working men and women in agriculture, who seem to be dealing with flooding and droughts at a much more precipitous pace.

I know, from my time at the Standing Committee on Agriculture and Agri-Food, of which I have been a proud member for four years now, that all farmers will tell us they are on the front lines of climate change. They need to have some recognition of the good work they are doing. They also need a partner in Ottawa who is going to help them take advantage and thrive through these very uncertain times.

It is all about choices. With Bill C-8, I think there is a sense of regret. For me, it is a sense of regret for what could have been and what should have been. That being said, if through these measure, we are going to propose things like allowing small businesses to acquire equipment that will improve the quality of their indoor air, I think that is a solid investment. Just because we are starting to see some very hopeful signs of us getting out of this latest variant of COVID-19 does not mean there will not be future airborne illnesses. We want make indoor air quality much better, and we would if we were to make these targeted investments.

I also like the idea of allowing for an increase in the school supplies tax credit and allowing us to expand that eligibility criteria to include the electronic devices that educators benefit from. A lot of people are struggling to make sure they can get by on those family budgets, so little measures like that, for many families, can actually go quite a long way.

I am also interested in the proposal here in Bill C-8 about the refundable tax credit for the return of fuel levy proceeds to agricultural businesses. This has been an issue we have been seized with at the Standing Committee on Agriculture, because, especially when it comes to activities such as grain drying or even heating a barn, I am all for giving farmers an alternative that is not based on fossil fuels.

However, what we heard, very clearly, at the agriculture committee was that the technologies that are free of fossil fuels are not yet commercially viable, and they will not be so for another 10 years. Therefore, if we are going to make sure we are trying to give that price incentive, we still have to ensure that a viable alternative exists for our farmers, which is why I am in favour of giving them these very specific and targeted breaks, so they can make it through with their bottom line.

Part 2 of Bill C-8 would basically establish a 1% annual tax on the value of vacant or underutilized residential property. This would only be when the direct and indirect owners are non-residents or non-Canadians. Again, on housing, there are so many more ways that the government could have tackled this very big issue. I would say this is a good first start, but there is much more that needs to be done. I know the government likes to pat itself on the back with all of the things it has done with housing, but the proof is in the pudding. If we still see housing prices rise to these stratospheric heights, we have to measure the effectiveness of the policy against that reality.

I will conclude here by saying that we do have a federal budget coming in the next number of months. I sincerely hope the government realizes that this is the time for bold policy action, to really make sure Canada comes through these uncertain and very challenging times.

[Francis Drouin, Liberal, Parliamentary Secretary to the Minister of Agriculture and Agri-Food]

Mr. Speaker, I have the pleasure of sitting with the hon. member at the Standing Committee on Agriculture and Agri-Food, and he raised an important point. I know it does not impact the province where he is from, but we have heard from farmers the importance of the availability of a carbon rebate for grain dryers and for heating their barns.

Can he inform the House how important it is to pass Bill C-8 so they can get access to this important tool?

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

Mr. Speaker, allow me to return the compliment to my friend. I have had the pleasure of serving on that committee with him. I think he and I are the two longest-serving members on that committee.

We have heard repeatedly from farmers about their willingness to do the right thing and be a central part of the conversation on how we combat climate change. When it comes to the hard choices that farmers have to make when they are purchasing new equipment or finding an energy source, we first want to make sure that viable alternatives exist, which is why until they are developed and until they are commercially viable, we prepare the necessary tax breaks to help them through those tough times.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, the member referred to the NDP's finance critic, the MP for Elmwood—Transcona, and I would like to thank that member specifically for his work at the finance committee. He supported the amendment from the member of Parliament for Simcoe North to Bill C-8 that would ban foreign buyers from purchasing Canadian residential properties. This member has mentioned that in his riding on the island, we have seen amazing jumps in home prices and lots of speculators there, including foreign speculators. He lamented that there is so much more that Bill C-8 could have been.

Could he enlighten this House as to why the government would vote against something that its own Prime Minister has promised to young Canadian families who want to get into home ownership? Why, when it comes to the chance to vote for something that meaningfully will address that issue, do they vote against it?

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

Mr. Speaker, sometimes the workings of Liberals at committee, as with Conservatives, can remain a mystery, and we do not always know the full reason that they vote the way they do.

That said, I agree with him that so much more could have been done, but as an opposition party, we have to respect the government's prerogative to decide the time it will devote to the bills that it brings forward. We can only deal with the parameters that the government sets out.

For me, I am always looking ahead to the next day, to the next fight and to the ways that I can influence government policy and make sure that it is doing right by the residents of Cowichan—Malahat—Langford. I very much look forward to that opportunity being with the next federal budget.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Mr. Speaker, earlier, my colleague from Joliette said that an amendment proposed by the Bloc Québécois to Bill C-8 was rejected.

What does my colleague from Cowichan—Malahat—Langford think of our proposal that the federal government consult the provinces before infringing on areas under their exclusive jurisdiction?

The Bloc Québécois is very concerned about housing. We have made a lot of suggestions, but we think that the exclusive jurisdiction of the provinces over taxation must be respected.

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

Mr. Speaker, I guess I would answer his question this way: The federal taxation power is a very broad power that can be open to a lot of interpretation, and courts have been a bit wary about intruding on that specific right.

That being said, I think the challenging times that we live in demand that the federal government look at unique and innovative ways to raise revenue. The NDP has long championed things like a wealth tax, and that is something I will continue to proudly fight for.

On the member's main question of consultation with the provinces, absolutely. If we are going to have a strong federal partnership, the provinces play a very important role in that, and I will never shy away from promoting the idea that consultation should happen on a regular basis.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, it is a pleasure to speak today on Bill C-8 at report stage. I may also include some general comments, as I did not get a chance to speak to the bill when it was in the House earlier because the Liberals shut down debate on it.

Let me go through the different parts of the bill. As always, I am not here just to criticize the government; I like to make helpful suggestions as to what would be better or what should have been done as we go.

In the first part, there are some amendments to the Income Tax Act to put in place a few tax credits. I do not find these tax credits very objectionable, but I see there is one there to expand the travel component for northern residents who have to travel as part of their job. I want to bring to the attention of members that there is also a private member's bill to do this for tradespeople who are travelling as well, which is quite a good thing.

With respect to the tax credits in the bill, I want to talk a bit about the one for farmers to return fuel charge proceeds to give them a break. What I think would have been more helpful is for farmers to have been exempted from all the carbon tax increases that have happened over time. They do not get credit for the fact that most of them are growing crops that take CO2 out of the air. On the other hand, they are paying thousands of dollars in carbon tax. At a time when we as a government and Canadians in general are concerned about food inflation and the cost of everything is going up, certainly we could do more for farmers.

Also, many of them are still waiting for the compensation committed to them when the new North American free trade agreement, CUSMA, was put in place and supply-managed quotas were given up. In these times when the world is concerned about food security and food inflation, giving farmers the benefit of an exemption from the carbon tax and giving them the compensation they are due would be important.

With regard to the part 3 limitations with respect to paying back amounts owing under the COVID programs, the Conservatives supported the measures that were needed to get through the pandemic. However, we see that a lot of the problems with them, such as the GIS problem experienced by those people who also collected the CERB, are still not fixed. I think the government could have done a much better job in addressing those, but wrapping up these programs and making a plan to exit the pandemic and restore the economy is key.

There is money included to make support payments for COVID tests. The Conservatives were calling for rapid tests for quite a long time but, as with everything, the government has been very slow to deliver. The issue I have now is that the World Health Organization is saying all these travel restrictions, measures and mandates at the borders are no longer meaningful because omicron is so transmissible. It is everywhere, and people who are vaccinated can get COVID. Although at the time we were calling for rapid tests, now we are calling for the removal of these measures, especially at our borders, such as in Sarnia—Lambton, because they are really not doing anything to prevent the transmission and spread and are a burden and a barrier to trade and tourism, which are areas we want to see restored in the fall economic document. We want to get back to creating jobs and get tourism going, and these things will require the elimination of these mandates, which is what is being called for by the World Health Organization. We see many other countries and provinces dropping these measures, as is appropriate.

Part 7 talks about amendments to the Employment Insurance Act to address benefit periods for seasonal workers. While I think that is very good, I do not understand why some of the things we have been hearing about now for two years have not been addressed. An example is that people who were not quite ready to go on maternity benefits during the pandemic had to give up their jobs. We heard questions in the House this week on that issue. I would say that this issue is a priority.

The other thing that needs to be fixed is this: Federal mandates and mandates in other areas meant that people who would not take the vaccine were fired from their jobs and were not allowed to collect employment insurance.

This makes no sense at all. Under the employment insurance system, people pay a premium into it and they receive the benefit. The discrimination that prevented these people from collecting what they were qualified to receive from the system that they had paid into needed to be fixed.

Among other issues that we have seen, there is the discussion about the tax on vacant housing. We have heard members say that it is not the government's jurisdiction, but I would argue that it is not even going to work. The problem we are trying to fix is the affordable housing crisis in this country. That is simply a problem of supply and demand. Solutions that provide a minor amount of tax are really not going to drive the kind of behaviour we need to see.

In my own riding of Sarnia—Lambton, we have made quite a comprehensive plan, recognizing that we do not want to just tax vacant buildings but convert them into affordable housing. That is the kind of initiative that the government should be presenting and participating in with municipalities. If the measure the government put in place here was going to put a larger tax on vacancies and give that money back to the municipalities to address the affordable housing crisis in their ridings, that would have been far better.

In addition, the money is just not flowing fast enough. Certainly, we are coming along with our plan. We recognize that we have a lot of foreign students, so we need a residence built and we need some government support there. There are a number of issues that we could have addressed to deal with the supply.

The other thing is to keep foreign buyers out of the market. I have been speaking about this for two years. I know this aspect was raised at committee, and the government even had it in their platform. It just boggles the mind that it takes so long to put something in place that makes sense to all parties in the House.

The other reality we are concerned right now is food inflation. There are so many different factors at play, but one of them is the supply chain. We have certainly seen supply chain disruptions. I am concerned about the potential rail strike that we may see as early as in the next week or two, which will further disrupt the supply chain. This is going to be a big deal. Where is the government plan? We have distribution by rail and we have distribution by truck and we have distribution that comes through our ports, but there is really no comprehensive plan to protect and expand those distributions to impact on food security.

At the same time, in the middle of this pandemic, the government continues to increase the carbon tax. The carbon tax has done nothing to reduce our emissions in Canada. Emissions reductions in Canada have come from the technologies that we implemented and from actions we have taken to actually reduce the footprint. The carbon tax has done nothing but drive the price up for the people who could least afford it. I think it is obscene that the government is going to once again raise the price when we see people living on a fixed income and seniors being in such a tough spot.

When this bill came out, I expected that it would reflect some of the things that were in the fall economic statement, which started off by saying that it would protect our recovery by finishing the fight against COVID. Where is the plan from the government to finish the fight against COVID, to exit the pandemic and restore the economy? Let us get rid of these mandates. The World Health Organization is calling for it and other countries are doing it. We see the provinces returning to normal. We need to do the same. We need the government to take a role in putting forward a plan. Canadians are looking for that.

We have a lot of work to do to rebuild our economy and restore lost jobs. I, for one, would work together with all parties in this House to make that happen for a better Canada.

[The Deputy Speaker, Chris d'Entremont]

I know we are almost out of time. I thought we would switch over and come back later for five minutes of questions and answers with the hon. member.

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.

Economic and Fiscal Update Implementation Act, 2021

[The Deputy Speaker, Chris d'Entremont]

When we left it last time we were going into question period with the hon. member for Sarnia—Lambton.

Questions and comments, the hon. member for Courtenay—Alberni.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Speaker, we keep hearing about inflation. We have heard about the housing crisis. Right now in my riding housing has gone up over 40% in value just in one year, especially in Port Alberni. People are being pushed out. We need non-market housing. There have been several applications made to the federal government, but it continues to give them the shuffle. More and more people are displaced or homeless. Right now, we have an opportunity, a partnership of multi-stakeholders wanting to purchase a hotel in the Alberni Valley to house the hardest to house.

I might outline also that the Parole Board of Canada has written a letter of support for this proposal. It has outlined that there is not a single space for its clients to live when they are released through the federal parole system. That is very alarming and keeps the cycle of incarceration going.

Therefore, I am calling on the federal government, and I would ask the member if she agrees, to invest quickly into non-market housing to address this need.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, I agree that we are seeing concerns with respect to inflation, food inflation and affordable housing, all due to the failed policies and lack of action from the current Liberal government. What I do not understand is why the member and his entire party continue to prop up the government and support these failed policies that are causing inflation and this burden on the people of his riding as well as mine.

[Robert Gordon Kitchen, Conservative, Souris—Moose Mountain, SK]

Mr. Speaker, it is good to see you in the chair. I know the member is well aware that the Canadian taxpayer has the ultimate responsibility for the ever-increasing $1.2-billion debt the current Liberal government is continually escalating.

The member also mentioned in her speech the carbon tax and the ever-increasing financial impacts of that. I know she is aware that when we look at the price of gasoline going up, even the 45¢ increase in gasoline we have seen over the last six months amounts to a 3¢ per litre GST increase to the government, not to mention the quarter of a billion dollars in GST that is being collected. I wonder if she could give us her thoughts on the impacts of the GST and the carbon tax.