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

[Damien Kurek, Conservative, Battle River—Crowfoot, AB]

Mr. Speaker, I believe that member was very close to the line of referring to someone's presence or absence in the House. I know that in this hybrid format, members, whether they are attending virtually or in person, are entitled to the same rights and privileges that each and every member of this House is given.

I would ask that that line be respected within this place.

[The Deputy Speaker, Chris d'Entremont]

I think we are all ready to move on. We were on questions and comments for the member for Yorkton—Melville.

The member for Battle River—Crowfoot.

[Damien Kurek, Conservative, Battle River—Crowfoot, AB]

Mr. Speaker, I do have a question. I appreciated the member for Yorkton—Melville's speech, as she brought up some important points.

We see in Bill C-8 a doubling down on the failed economic policies of a government that has led our economy into a challenging state between large inflation and economic metrics all over the map.

Could the member for Yorkton—Melville comment on that?

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

Mr. Speaker, what we have here is a very good example of very poor mismanagement by the government. I know members of the government complain that we are in the same scenario as the rest of the world, but this country faced the same challenges back in 2008 and 2009 with a collapse of the world economy. Our country, under the leadership of the wonderful deceased Mr. Flaherty and the then prime minister Stephen Harper, led the world, and we were highly recognized for the way we handled the economy during that time.

The government is really impacting Canadians with all kinds of stress and duress with the way it is managing its finances.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Mr. Speaker, I myself recognize and feel a lot of frustration with the ongoing public health orders, not because I think they should be lifted but because it has been tough on people. In the face of a crisis, sometimes we are called on to do hard things.

I support people's right to protest peacefully, but I have to note that the organizers of this event have an MOU, which they have been asking people to sign, that is about deposing a government in an undemocratic way. They are calling on a committee of their own selection to rule the country with the Senate and the Governor General, as if that is something that makes sense under our Constitution and considering good principles of democracy and government.

I have been a part of many protests. I have not seen the kinds of hate that we have seen, which is not to say that everyone who supports the cause supports those symbols, but there is a lot of it. There are a lot of people who have been accosted and harassed in the streets. Those are things that I absolutely do not support. I do not see the leaders of this protest denouncing in any way.

I have been part of protests where the leaders have told people to go home because of the activities that they are engaging in that are detracting—

[The Deputy Speaker, Chris d'Entremont]

Order. We will move on.

To answer the question quickly, the member for Yorkton—Melville.

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

Mr. Speaker, I totally hear what the member is saying, and I appreciate him a great deal. What challenges that whole line of thought could be answered very easily if some time is taken to read the article “A night with the untouchables” and hear what is not being reported versus what is being reported in our news and from various sources. It gives a totally different perspective on this.

I agree with the member that this needs to be dealt with, but I want every member of Parliament in this House to have a true sense of who these people are. I would encourage them to do two things: read the article, “A night with the untouchables” by someone who lives downtown, and please go talk to some truckers.

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

Mr. Speaker, I am pleased to be speaking for the first time at length in this 44th Parliament representing the citizens of Chatham-Kent—Leamington.

Before I go on to make some comments on this specific legislation, I want to congratulate two of those citizens, my parents, as today is their 61st wedding anniversary.

With respect to Bill C-8, it should come to no one's surprise that I will be opposing this legislation and these additional spending measures. Why? It is because they are adding more fuel to the inflationary fires. The recent report by the Parliamentary Budget Officer states that more stimulus spending will only stoke these inflationary fires, resulting in an inflation tax. Asked at the finance committee if government deficits contribute to inflation, the PBO stated very clearly that, yes, they can.

How much money are we talking about? Another $71.2 billion in spending is referenced in the economic and fiscal update, and since the beginning of this pandemic, the government has introduced $176 billion in new spending that is unrelated to responding to the pandemic. Our interest-bearing debt is approaching $1.4 trillion.

I will borrow some descriptions my colleague from Edmonton West used yesterday when he outlined what that means. We understand what $1 million looks like. It is a one and six zeroes, but $1.4 trillion is $140 million millions. Folks should think about that. Yesterday during question period, the finance minister stated that 8 out of 10 dollars spent as a COVID response have come from the federal government, even if they have been delivered provincially, so the accountability for this spending lies with the government.

Let me mention two areas where Canadians would have been better served by a government being more proactive, which would have lessened the need to be so reactive to pandemic effects. The first is securing rapid tests. Conservatives supported the sourcing of rapid tests well before we had vaccines, almost two years ago now. Late in this pandemic, the government seems to have seen the light and now wants more rapid tests. After five waves of infection and the economic carnage that lockdowns bring, we are now finally seeing an effort being made.

The second is ICU capacity. Lockdowns have been invoked by provincial governments largely in response to the fear that critical care capacity will be overwhelmed during peak infection periods. It is not that often that my colleagues agree with opposition colleagues in this chamber, but on the point of increased health transfers, we do agree. In particular, while in some places we lack bricks and mortar in our health care system, we primarily lack doctors, nurses and nurse practitioners. It is the critical care capacity deliverers that we need so many more of.

While this is of course a provincial responsibility, in my federal role I have been closely monitoring the local health care capacity in my riding at Erie Shores hospital in Leamington and at Chatham-Kent hospital, especially because of the overlap of providing this care to our citizens combined with care for the guest worker community of the agricultural sector in my riding. I could spend 10 minutes just talking about the experience there in the last two years.

I did not realize that Canada only has one-third of the health care capacity of our neighbour to the south. I did not know that until we got into this pandemic. That is why such a low percentage of people who are critically affected by COVID so quickly overwhelm our health care capacity. These are the two areas where, especially early on in this pandemic, it would have been far better to respond proactively.

However, the cumulative effect of government spending in areas responding to, rather than preventing, the economic damage of COVID have led to a very predictable outcome: inflation. This form of taxation, and that is what inflation is, affects so many areas of our lives. It affects those particularly who can least afford it more than those with assets who can actually benefit from it.

Let me touch on just two areas. The first is housing and the crisis in housing inflation. The injection of so many printed dollars into our economy has exacerbated the rise in the cost of housing. While in Chatham-Kent—Leamington the average costs are not as high as national averages, the rate of increase, particularly on the lower end of the spectrum, is even higher. With the interest rate now below the rate of inflation, because it is rising, this provides a further incentive to bid up prices.

We have not yet seen the end of this inflationary housing bubble. The end is not written. The Bank of Canada has signalled that interest rates will rise. How many people will face an even greater pressure on their personal finances when it comes to renewing their home mortgage? The main solution of course lies in the basic laws of supply and demand. We need more houses built, not more taxes, and not more spending, which only drive the inflationary cycle.

Second is food inflation. Anyone who eats or, more specifically, buys groceries understands the rising cost of food in Canada. Prior to having the honour of standing in this place today, I actively farmed and produced food for most of my adult life. I also had the opportunity to be involved with the business of representing food producers at negotiation tables and in industry circles.

I understand that the broad inflation is not the primary driver of the cost of raw product of food prices in Canada. Weather events, geopolitical tensions and other trade issues impact the cyclical nature of these markets more than broad inflation, but, and this is a big but, I am speaking of raw food pricing. What the Canadian consumer experiences at the grocery aisle is only minimally impacted by the price of what a farmer receives. In most food stuffs, the percentage cost represented by the raw component is very small. The labelling, packaging, transportation, processing and preparing are cost components that dwarf the raw component, and of course, these are all cost drivers that are affected by inflation.

In conclusion, what would it take to get us out of this mess? First, the government needs to reorient its approach. It is encouraging to hear from our health care leaders, and in particular I want to point out Ontario's Chief Medical Officer, Dr. Kieran Moore, who support our need to learn to live and work with COVID. We need to move from a pandemic state of COVID to an endemic state. The vast majority of Canadians have done what we have asked of them. They got vaccinated and observed public health measures.

We have the tools, the vaccines and the rapid tests, or we should have the rapid tests. Now we need to learn to live with COVID, and we need to open up.

Second, we need to rein in government spending. We need to tamp down inflation, and we need to blunt the trend of rising interest rates, which inevitably result from inflation. It appears that the government's tax-and-spend approach, which resulted in inflation, is almost intentional. This is its way of inflating its way out of massive debt.

Lower taxes, less spending, leading to lower inflation and more economic growth is the only way out for all Canadians.

[Taleeb Noormohamed, Liberal, Vancouver Granville, BC]

Mr. Speaker, we have now seen the occupation of Ottawa by right-wing radicals and racists, an occupation that has been supported by some of the member's colleagues and denounced by others. We have seen Confederate flags, swastikas, anti-indigenous racism, not to mention the total shutdown of small businesses in Ottawa.

My hon. friend has said he does not support any new spending because that is not necessary. Given what he has seen in Ottawa this week, would he not agree that spending to support small businesses, women-owned businesses, indigenous innovation and Black-owned businesses is actually good policy and good for this country?

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

Mr. Speaker, that is actually not what I said. What I said is that we need less spending broadly. I supported measures for rapid tests, particularly if it had come much sooner. Targeted spending at preventative measures would have lessened the need for gross spending in response. I cited two areas, rapid tests and investments in health care. That would have prevented much of the spending in response and the resulting inflation that Canadians are now experiencing.

[Jenny Kwan, NDP, Vancouver East, BC]

Mr. Speaker, I would like to ask the member about support for seniors. He talked about not having government spending, but one of the things the NDP has been calling for, even before the election, is for the government to support seniors and not claw back their GIS. This is because seniors are getting evicted and rendered homeless at this point in time.

Does the member think the Liberal government should immediately restore the GIS to seniors?

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

Mr. Speaker, first of all, I have a question. The government has promised that a payment is coming to seniors. When? My constituents have not seen it.

Second, seniors and all people on fixed incomes are experiencing inflation. That is the tax that is eroding what they are already receiving. We need to blunt the force of inflation, and the resulting higher interest rates, to help our seniors and all of us in this economy.

[The Deputy Speaker, Chris d'Entremont]

The member will have two minutes or so of questions and comments remaining when we come back to this.

The House resumed consideration of the motion that 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, be read the second time and referred to a committee.

[The Deputy Speaker, Chris d'Entremont]

We did have a few moments for questions and comments for the member for Chatham-Kent—Leamington, but I see we are moving on from that.

The hon. member for Medicine Hat—Cardston—Warner.